Office Space Lease in Overland Park from a Landlord’s Perspective
When you as a tenant want to rent a space, it is important to not only know what your own needs and concerns are, but what a landlord’s priorities are going to be. An understanding of what the landlord wants out of a lease can help prepare you for negotiations by figuring out the where you might want to fight for what you want and where it would be best to compromise. Here are a few things landlords want out of a lease, as outlined in the article “Focus on Landlords – Key Landlord Lease Issues”:
- Gross-up Clause. Many landlords want to add a gross-up clause to the lease in order to make sure that they can cover operating expenses that might vary from tenant to tenant.
- Limited Transfer Rights. You as a tenant might want the possibility of transferring your lease to a third party if necessary, but a landlord might try to retain the right to repossess the space in this situation if they want to.
- Access to Premises. The landlord will most likely want to be allowed access to your rented premises in the event that they need access to the property for other tenants’ build-outs—for example to run cables, conduits, or pipes.
- Restricted Special Rights. The landlord will try to limit any special privileges, i.e. the right to self-insure, to only the original tenant named in the lease.
- Construction Guidelines. The lease might specify that you as a tenant are to carry out any construction on your space in a way that preserves labor harmony.
- Right to Withhold Consent. The landlord will most likely try to make sure that your avenues for addressing their failure to give consent on something like subleasing, for example, are limited and do not involve any financial liability for them.
- Lease Document Length. A final landlord angle to be aware of is the fact that landlords usually prefer shorter leases in order to be able to sign tenants quickly. They will most likely present a shorter lease with terms that are more favorable for them in the hopes that a tenant will sign without making too many changes.
As you enter negotiations for a space, be aware of what the landlord is looking for so that you can understand your leverage and the priorities of both sides.