You would not consider entering into a long term lease agreement without the assistance of a realtor or a lawyer. The first will guide you to the facility best suited to accommodate your business’s needs. The second will protect you from costly surprises during the term of the lease and your eventual move out. That depth of experience is all you need, right? Wrong!
Here’s why:
- Neither of those trusted advisors have the skills and experience to assist you in determining how much (or how little) it should cost to improve the leasehold to work for you. They (and you) may have the benefit of years of similar transactions, but all suffer from the dangers of a little knowledge.
- Most architects and engineers are willing to provide an initial consultation at no or a nominal charge, just a quick walk through the prospective property. An immediate identification of structural concerns or a simple “what were you thinking?” can save you much time and legal fees.
- Your leasehold-related costs are apt to be the second largest line on your expense statement. An accidental overstatement of, say, 400 square feet at $16.00 per square feet over 5 years would increase lease costs by $32,000. Leasehold improvements for a 10,000 square foot leasehold could top $150,000. These are the line items whose order of magnitude and potential risk justify bringing in the expertise to lower those costs and manage those risks.
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