|
|||
|
Relocation Clause Free Information On Relocation Clause Many office space leases provide the landlord the option of relocating the tenant at the landlord's expense. For example, consider a local business leasing 2,000 square feet of office space in a 1,000,000 square foot high-rise downtown office building. The landlord is attempting to lease 100,000 square feet of space to a Fortune 500 business. However, to consummate the lease they need the 2,000 square feet of space occupied by the smaller, local tenant. You Lose Even if the landlord pays 100% of the cost to move your business, you will incur a loss. In addition to the time spent planning and executing the move, it will disrupt your business. Relocation clauses are another issue where the interests of the landlord and the tenant diverge. Event of Default An "event of default" is when either party does not perform as agreed upon in the lease. In some leases, the landlord has the right to terminate the lease if the tenant defaults. This can include both objective and subjective issues. An objective issue is timely payment of rent. A subjective of issue could be a product or service offered by the tenant which was not initially contemplated. Non-Financial Event of Default - Example For example, the tenant put large boxes in the hallway. (Office equipment came packed in the boxes.) However, the lease and / or building rules and regulations clearly prohibit putting trash in the hallway. Next Chapter Leasing Office Space - Financial Event of Default
| ||||||||||||||||