What is the term of a typical lease?
How is the rent quoted?
What is the tenant's option for termination or break?
Typically, the tenant has the right to terminate the lease with 3 months’ notice.
Does the tenant have the option to renew? What is the length of the typical option?
Tenant has the right to renew for an equal term, typically 5 years.
How is the rent determined at renewal?
Rents are determined according to current market rates for similar properties in the same region.
What is the typical rent-free period, if any?
What is the typical rent escalation?
Ranges from 4% to 6% annually.
Does the tenant have the right to sublet?
Typically to a related/subsidiary company.
Otherwise, sublets require the landlord’s written approval.