Published January 23, 2017

7 Strings Attached to the Tenant Allowance Trap

Although reading a commercial lease can be difficult and time-consuming, the consequences of not reading can be infinitely more unpleasant. Tenants frequently will only look at the provisions that have direct economic impact. There are, however, provisions buried in the lease which may have unintended impact on the tenant. While a tenant’s ability to delete or modify these objectionable provisions will depend on a number of factors, including, among others, the size and reputation of the tenant, market conditions, the vacancy level of the building, etc.

Key Takeaways:

  • Restaurateurs, and their real estate representatives, often take great pride in how much tenant allowance money they extract from a landlord as part of a lease transaction.
  • most restaurant operators do not grasp this distinction
  • More than likely the landlord’s lease proposal will include a single page work letter outlining the condition in which the space will be constructed

“Restaurateurs, and their real estate representatives, often take great pride in how much tenant allowance money they extract from a landlord as part of a lease transaction.”

https://www.fsrmagazine.com/kitchen-sink/7-strings-attached-tenant-allowance-trap

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