Coretz - Commercial Real Estate Tucson

A wide range of commercial leasing possibilities exist. Typically, an office lease in a major city and a retail lease in a suburban shopping center will be considerably different.

From a broad perspective, there are a few types of leases commonly found. Within these categories, leases may vary considerably.

 
Coretz - Commercial Real Estate Tucson

Most “form” leases provide that the tenant can’t make any alterations or improvements to the premises without the landlord’s consent. Those provisions are typically too restrictive and you should attempt to negotiate changes. For example, try to get the right to make non-structural changes or changes costing less than $2500 without the need to obtain the landlord’s consent.

Before you can occupy the space, the premises may need some improvements or alterations to make it appropriate for your business needs. Here are some key questions to ask about the initial tenant improvements and alterations:

 
Coretz - Commercial Real Estate Tucson

Because your company’s future space needs are uncertain, renewal options for an office lease can be quite helpful. However, some landlords may be reluctant to grant such options, because doing so limits their flexibility to market the space to prospective tenants.

If the landlord is amenable to a renewal option, try to get the option rent at a fixed pre-determined price. If you can, avoid the renewal options that are based on “fair market rent.” Here are the key issues for renewal options:

  • How many option terms can you get?
  • How long is each option term?
 

The Facts about Saving Energy in Office Buildings

Coretz - Commercial Real Estate Tucson

Commercial office building tenants breathe a sigh of relief when mild summer weather reduces utility costs from their heights in the winter. But you can still continue to review the energy efficiency of your operations to lower costs and boost profitability.

At first glance, the task may seem easy. People today can pick the latest in fluorescent lighting, electronic controls and heating and cooling equipment. Technological advances put their energy efficiency well beyond that of similar equipment made just 10 years ago.

 
Coretz - Commercial Real Estate Tucson

Going green not only conserves natural resources, it can also save you money, and not just because your costs are reduced. Some energy-efficiency tax credits signed into law recently are still in effect. These credits are available to consumers for the purchase and installation of energy-efficient appliances and products, as well as the purchase of fuel-efficient vehicles.

The tax credits allow consumers to reduce their tax bills on a dollar-for-dollar basis. According to the U.S. Department of Energy, consumers who purchase the most fuel-efficient vehicles could reduce tax liability by up to $3,400, and those who install certain products like energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in the home can receive up to $500 off their federal tax bill.