Brokers Should Have a Working Knowledge of the Lease

 

The first thing we ask a client to do in preparation for developing a facility plan is to send us copies of their present leases. There are several reasons for this. They are:

 

• It gives us a chance to see what their present size and financial obligation is.

• It allows us to review any present deal points that might affect future leases.

• It allows us to see what lease "idiosyncrasies" the client may have.

 

You should be skeptical if a broker didn't first ask for all the details of your present obligation. Is there a concern about where you were, where you want to go, and how you're going to get there? Or does the concern seem to be “where's his next deal?”

 

Your broker should have a good working knowledge of all lease documents. While only a certified lawyer can address the legal implications of the lease, your broker should certainly be able to advise you on how the business points of a lease may impact your business.

 

Too often, we see tenants signing the landlord's boilerplate lease without either their lawyer's or broker's careful review. In other chapters, we talked about signing the "standard" lease. Many brokers tend to review only the economic points of a lease. Ask for their advice on other lease language points before you present the lease to your attorney.

 

This will not only save you from potential future tenancy or economic problems, but it could save you legal fees. Attorneys do have to do their “thing,” but the good ones appreciate getting a lease that has the red flags already highlighted.