Why Building Operating Hours Matter – What You Don’t Know Can Hurt You

When it comes to normal operating hours, all buildings are not created equal.  But most buildings provide reasonably convenient access to their tenants 24 hours a day, seven days a week.  So why does this even matter?  Well, if you’re just a plain old 9-5 business, it doesn’t, really.  But is any post-recession business these days  plain or old?

Electricity, telecommunications, and HVAC (heating and air conditioning) are three of the most mission critical services a building provides to its business tenants.  And all three  – and their cost to the tenant – are impacted by the building hours; more specifically, the hours outside of the normal hours of operation. 

With their focus on fundamental lease provisions like base rent, free rent, term, and options to renew, many corporate tenants don’t pay attention to the provision stipulating how much the tenant is charged for using the building after hours.  In some buildings, this can run upwards of $100 per hour!  Leases also state that if a tenant is deemed to use more than what the landlord deems a reasonably  proportionate amount of electricity, they can be surcharged by the kilowatt.  If you are a seasonal business that burns the midnight oil or works seven days a week during certain periods of the year, this can really add up! 

There are myriad ways a good tenant representation broker can negotiate these conditions in the lease document and save a large tenant hundreds of thousands of dollars over the course of the lease. 

Burning the midnight oil doesn’t need to singe your bottom line. 

Where To Find The Guts To Negotiate Tenant Default Language

Of all the lease clauses under the sun, none are more awkward for a tenant to negotiate than the language defining their defaults and the associated penalties.  It feels so self-incriminating for a tenant to ask for more flexibility in how late they can pay the rent or more time to cure if they neglect to pay on time. 

No question, tenants enter into lease agreements with optimism and high hopes for the future.  What a drag it is to ponder their own failure!  But there is always some probability for administrative mistakes or failure and the need for the tenant to protect their interests is as important here as with any other  clause of the lease that has financial ramifications to the tenant.  Some leases are drafted by the landlord with draconian terms that penalize the tenant severely for minor slip ups.  An experienced broker is knowledgeable of fair and reasonable terms that most landlords will agree to and can help the tenant to save face by going to the mat on these issues on their behalf.

A good tenant representation broker will insure that all terms of the lease are fair and equitable no matter how unpleasant they are to ponder!