Finest Real Estate Attorney Around

“I have referred matters to Mark for several years because he is one of the finest real estate attorneys around. I have no hesitation in recommending him for anyone’s real estate matters, whether it be individuals or other attorneys. He’s a professional.”

Steve Dimick, Attorney

What is the Appropriate Leasing Term for you?

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Signing a commercial lease is a significant commitment for most businesses.  Whether negotiating or renewing a commercial lease,  it can be difficult to determine the best lease term for your business. Many companies settle for a “standard” 5-year term, which may be appropriate. But there are factors to consider that could make a shorter or longer term more advantageous for your particular business. The information in this discussion may be useful helping you arrive at an appropriate lease term. However, if you’re still not sure, the best approach might be to consult with commercial leasing attorneys to advise you.

How to determine the appropriate leasing term for your business

One of the first considerations when determining the best commercial lease term is your type of business. This will determine the extent of any tenant improvements necessary to prepare the premises for commerce. For instance, medical and dental practices generally require extensive plumbing upgrades, necessitating a significant financial tenant investment.

Even after factoring in any landlord investment, the cost of tenant improvements can be a large outlay for business owners who need to develop a facility suitable for their operation.  A 10-year lease term, rather than a 5-year lease term, allows you to recoup the tenant improvement investment over a longer term, allowing for greater profitability over the length of the leasing period.  Adding one or two 5-year options at fair market rent provides you the flexibility to remain at the location at the end of the initial term. This is always advisable from the tenant’s point of view.

Going hand-in-hand with the type of business is the specific location of the property.  A longer lease should be considered when you are able to secure a location that provides a high expectation of business success. This is particularly so with a new business or location-sensitive businesses that involve greater statistical risk, such as restaurants or other kinds of food service, or a medical facility in an area where none currently exists. A shorter lease term with one or two option periods will work well for such businesses.

Finally, the ability to negotiate the term of your lease will be influenced by the commercial real estate leasing market in your area, which includes the vacancy rates, availability of space in your desired area, and current market rents.

It’s always a good decision to seek consultation from professionals. For further assistance, contact the experienced real estate attorneys at Poniatowski Leding Parikh Law Corporation.

It’s always a good decision to seek consultation from professionals. For further assistance, contact the experienced real estate attorneys at Poniatowski Leding Parikh Law Corporation.

To be sure about establishing the right leasing term for your Bay Area business, contact the real estate attorneys at Poniatowski Leding Parikh Law Corporation. Call one of our offices below or use our online contact form. With almost 50 years of combined experience in real estate and business law, you can be confident of receiving highly responsive and skilled representation.

CASTRO VALLEY, CA
T: (510) 881-8700

OAKLAND, CA
T: (510) 671-0887

PLEASANTON, CA
T: (925) 400-8087

What to Do Before You Buy Commercial Real Estate in the Bay Area

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Purchasing commercial real estate in the Bay Area can be a solid investment. Whether you are considering buying property in Oakland, Pleasanton, San Leandro, or anywhere in the Bay Area you will likely find a wealth of appealing options available. However, you will need to consider certain details before signing a purchase agreement. The following are some of the steps worth taking prior to buying Bay Area commercial real estate. Continue reading

Non-Disclosure Agreement Do’s and Don’ts

non-disclosure aggrement, commerical attorney, business attorney, attorney, lawyer, castro valley, hayward, pleasanton, oaklandWe live in a highly competitive business environment, which pits people against firms, and major corporations against small businesses. When negotiating transactions, individuals and companies must prevent unauthorized disclosure of their trade secrets and proprietary information, which is so vitally important in such a competitive business environment. One of the ways for professionals and firms to protect trade secrets and proprietary information when negotiating transactions is through a properly drafted Non-Disclosure Agreement (NDA). With an NDA, the parties to a transaction are prohibited from sharing with third parties trade secrets and proprietary information that is disclosed to them in connection with the negotiating and due diligence of a proposed transaction. Continue reading