Brokers seem to quote space as both useable and rentable square footage. What is the difference between useable and rentable square feet, and how are they both calculated? The space that a tenant can actually use is called “useable”, or sometimes “carpetable,” square footage. This may be very...

The space that a tenant can actu­ally use is called “useable” (or sometimes “carpetable”) square footage. This may be very important to the tenant in laying out his furniture, but it is not the critical component in calculating rent. The rent in most leases incorporates both the useable square...

What do you recommend as the right lease term for an office lease? This is highly dependent on your objectives and the nature of your company. So let’s start with some of the advantages and disadvantages of short and long-term leases. One of the major advantages of leasing office space, as opposed...

Looking on the internet, I see that rental prices have different labels. What are the differences between a net lease, a gross lease, and a full-service lease? These are all terms used to describe the manner in which services and expenses are paid in a landlord-tenant relationship. While the terms...

Once we have found the building we want to purchase, what is the best way to start negotiations? Entire books have been written about the art of negotiating, so I can share only a few of the strategies that have helped me negotiate advantageous transactions for our clients. Fundamental to any...

I have hired a commercial real estate broker to sell my industrial building. The building has two tenants. He is asking for all sorts of information that I feel is part of the due diligence that the eventual buyer, not me, should be doing. Why go hunting for problems? It is my experience that...

We are in the market to buy an industrial building. How concerned should we be with the specific zoning of each property we consider? There are a number of concerns in the evaluation of zoning, but the primary one is whether you can lawfully operate your business. As a general rule, most light...

We are negotiating the sale of our industrial building, and the buyer is insisting on a long list of contingencies in the contract. What is normal? There is no “normal” set of contingencies to a contract of sale, in the same way there is no “normal” real estate deal. Contingencies are simply...

We are in the market to buy or lease a commercial building. What should we expect from our real estate broker? Whether you are represented by an exclusive real estate broker, a corporate real estate department, or a paid consultant, your representative should be responsible for the four major...

We are negotiating a commercial lease with a prospective landlord and have asked for a right of first refusal to purchase the building. He declined, but offered us a right of first offering instead. What exactly is the difference?A right of first refusal is a contractual right, giving you the...