Retail Leasing: The team needed by tenants for retail leases - by C. Jaye Berger

Anyone thinking about renting a retail space should start forming their team now. Most people tend to try to rely on their broker for many of the questions they have regarding what can be changed in the space and the terms and conditions of the lease, but tenants also need to be affiliated with a good lawyer, an architect, a contractor and an insurance broker. Leases are far too complex to just sign without having an attorney review it first. Many items are negotiable, but as they say, “If you don’t ask, you have no chance of getting it.” When it comes to what can be done with the space, you must have your own architect advise you on what can and cannot be done in the space and whether permits are needed with the building department to accomplish that. You cannot just rely on advice from the  broker. No matter how many words you use to describe the work you want to do, there still must be an architect’s plans for the landlord to review before they can approve your renovation work going forward. Construction contracts need to be drafted by knowledgeable legal counsel since there are complicated provisions and time lines that need to be adhered to. Insurance brokers will need to be consulted regarding certain provisions in the lease, such as indemnification, and the amount of coverage. Most landlords give tenants some free time to build out the space, but the tenant must be organized in order to take advantage of that by having plans drawn up or else the free time will be used up, work will still need to be done and the rent will be due. For example, tenants without legal counsel may not be aware that putting up a sign for the store may require an application to the local Landmark authority, which may take a long time to obtain approval. C. Jaye Berger, Esq., is the principal of Law Offices C. Jaye Berger, New York, N.Y.