Things to consider when Leasing space under construction
Here we will be discussing things to consider when Leasing space under construction. There are many nuances that comes with new construction that can significantly impact the deal and the costs associated.
What are you relying on to go forward with this space?
- Governmental approvals - zoning
- Approvals relating to the use - child care
- Being able to build the space
- Time and money estimated
- Landlord’s design criteria
There was a delay or other breach - now what?
- Build a mechanism in the Lease for the penalty for non-fulfillment
- Termination right
- Additional time to fixture
- Rent Free Period
- Cost Allowance
- Require that the space be measured, by a professional within a reasonably period after commencement
- Cap the approximate space so that the estimate can be relied on
- Ensure you understand the method of measurement and what gross-ups will be included
Katherine has spent over a decade immersed in the world of Real Estate and Corporate legal administration. After graduation in 2006 Katherine took a role in a small law firm, drafting real estate documents from scratch and assisting with estate administration. From there grew to a clerk role in a larger law firm and then transitioned to an in-house role with a commercial developer in Saskatchewan. Working for a development and property management firm gave Katherine experience working with complex corporate structure and drafting intricate lease contracts for a variety of properties and tenancies including both office and retail. Moving back to Ontario, Katherine took a role analyzing leases for major landlords and tenants across Canada, offering solutions to maximize profits in their portfolios. Currently Katherine owns Jensen Consulting, and offers her expertise as a consultant to help landlords and tenants across North America with drafting and auditing their Commercial Leases.