if I may be so bold, sounds like you are not working with a commercial real estate broker. They would be able to do the first phase of this language for you in the negotiation as this is material to the business. This can then be viewed by your attorney when it reaches the lease document stage- a few dollars spent in advance on this saves you heartache (and money) in the future. So, this may be for your next location - as you expand!
I don’t want to impinge on progress already made. You may already know this. The broker gets paid by the landlord and works for you and protects YOUR interests. The commission should already be “baked” into your rental rate, so don’t let the landlord hedge on the rental rate since a commission would be due. It also creates a buffer for you - you stay on good terms with the LL and your broker is the “bad cop”. It may be a good time to ask your LL if they’ve worked with brokers before. Not to nix the deal, just as a reference point.
If you are doing this on your own, great.
Some language that may be useful:
Right to Assign/
Tenant will have the right to assign and/or
sublet to a subsidiary, related or successor company without Landlord
approval. Tenant will also have the
right to assign and/or sublet to an unrelated company with Landlord consent,
which shall not be unreasonably withheld or delayed. Landlord will have 15 days from the time of
notice to provide their response to Tenant’s requested assignment and/or
sublease consent. Tenant will retain
all sublease profits (if any).
Hope all of this is helpful and best of luck
SITE REsolutions, LLC
e) [email protected]
On Friday, June 8, 2018 at 7:23:05 PM UTC-5, Brian Burgett wrote:
This is such a great resource! Thank you!
I am working on opening a coworking space in northern Cincy.
I have been working hard on getting a great lease put together. I absolutely love the space. We are the landlords first coworking tenant. They are pretty excited about having us join. The problem is that they have a pretty standard lease and it includes a non-assignment clause. They agree it doesn’t fit. It states they have to approve any sublease agreements (my attorney says it could apply to our type of business). It also states that any sublease rent we get over the lease amount goes to the landlord. The landlord has asked my attorney to come up with a better clause.
Can any of you who have signed a lease for a coworking space share the terms you have laid out in your lease on this issue? I would think I need to include that I have sole discretion to sublease and assign. It may include a description of how we make money? Am I missing anything?
Thank you all for the great conversations we have on this group!
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