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.