End-to-end Capabilities for Commercial Real Estate Leasing Workflow

Lease Review and Market Analysis

• Document Review: Thorough review of the existing lease to identify any renewal options, holdover clauses, maintenance obligations, common area maintenance (CAM) charges, and indemnities, or unique terms

• Market Analysis: Comparative market analysis to understand current rent rates and other commercial terms. This gives a basis for negotiations, especially if market conditions have shifted significantly since the original lease

Evaluating Renewal Options / Rights and Drafting Notices

• Option Clauses: Review any renewal or extension options that may already be embedded in the lease. Often structured as pre-set rights but might have conditions, such as timely notification requirements.

• Conditional Terms: Assess if the lease terms state conditions (e.g., tenant is in good standing or specific obligations like maintenance) that impact the right to renew.
• Draft the notice in compliance with the lease’s specifications, including the method of delivery (e.g., certified mail, courier).

Negotiation of Renewal Terms

• Key Terms: Reassess rent (base rent and escalations), term length, security deposits, tenant improvements (TIs), and any new responsibilities.
• Rent Escalations: These might be based on predetermined percentages or index adjustments (e.g., CPI). Negotiate caps on escalations, if feasible.
• Improvement Allowances: If the tenant needs modifications or upgrades, negotiate improvement allowances and responsibilities for the work’s execution.

Drafting and Reviewing key legal agreements

• Lease Renewal Agreement (Amendment): Review all terms meticulously to avoid ambiguities, especially concerning rent, improvements, and indemnification. ‍
• Tenant Estoppel Certificate (if required): Confirms that no defaults exist and the lease is in full force. Lenders may require this if financing is involved.‍
• Subordination, Non-Disturbance, and Attornment Agreement (SNDA): If the property has a mortgage, an SNDA agreement may be necessary to clarify rights in case of foreclosure.‍
• Updated Insurance Certificates – Confirms that both parties meet the insurance requirements for the property.‍
• Environmental and Zoning Compliance Certificates – Ensures that ongoing or modified use meets regulatory requirements.

Additional Considerations and Monitoring

• Tax Implications: Significant lease renewals may have tax implications for both parties.‍
• Environmental and Sustainability Considerations: With evolving environmental standards, tenants or landlords might seek clauses on energy efficiency or green certifications in renewals.‍
• Dispute Resolution Clauses: Clarify or renegotiate any dispute resolution mechanisms, like mediation or arbitration, to streamline potential conflict resolution during the new term.