An Offer to Lease is often just as important, if not more important, than the actual lease agreement when dealing with commercial tenancies. They are most often binding on the parties, therefore, a tenant should take special care to ensure that all terms stated in the Offer to Lease are acceptable.
While some people tend to think that the Offer to Lease is simply a document to “lock down” a prospective space, in reality, the Offer to Lease is the document that sets out all of the major business terms of the lease. In most cases, once signed, the terms of the Offer to Lease will govern the lease agreement and cannot be changed or further negotiated. The terms of the Offer to Lease are usually incorporated into the landlord’s standard form of lease agreement.
For these reasons, it is important for tenants to ensure that all of the major terms, and all of the items that are important to them as tenants, are clearly detailed in the Offer to Lease. This includes items such as the rent, term, permitted uses, options to extend, exclusivities, tenant improvement allowances and any tenant inducements – just to name a few.
It is also crucial for tenants to review the landlord’s standard form of lease agreement prior to signing the Offer to Lease, because most Offers to Lease will include a term that requires the tenant to enter into the landlord’s standard form of lease. Reviewing the standard form of lease prior to signing the Offer to Lease allows the tenant to address any concerns it has with the standard form of lease by way of changes to the Offer to Lease.
KH/Dunkley Law Group regularly advises both landlords and tenants on commercial tenancies, including Offers to Lease and Lease Agreements. We take the time to ensure that all of the major terms are clearly spelled out in the Offer to Lease, and further that the landlord’s standard form of lease is appropriate for the specific situation.
Be sure to contact KH/Dunkley Law Group BEFORE you sign an Offer to Lease so that we can provide you with proper legal advice, and so that we can work with you throughout the entire process of entering into the lease.
For more information, please feel free to contact our office.