What is the term of a typical lease?
<50,000 sq. ft. - 3-5 years, >50,000 5-10 years
How is the rent quoted?
What is the tenant's option for termination or break?
Typically, the tenant does not have the right to terminate the lease.
Does the tenant have the option to renew? What is the length of the typical option?
Typically, the tenant has the right to renew for a lease length similar to the initial term.
How is the rent determined at renewal?
Typically, rents are determined by market rent at renewal and are generally negotiated 3 to 6 months in advance of lease expiration.
What is the typical rent-free period, if any?
Usually a rent-free period of 0-2 months.
What is the typical rent escalation?
2%-3% depending on lease term and credit.
Does the tenant have the right to sublet?
Typically to a related/subsidiary company and size of space occupied. Otherwise, sublets require the landlord’s written approval.