Commercial Leasing: Adapting To Evolving Commercial Real Estate Dynamics

In today's dynamic commercial leasing market, ESG concerns, rising office vacancies, densification and high inflation are reshaping the industry. 

Here are five key considerations for successful lease agreements:

1. Properties Undergoing Development. Landlords should ensure that their lease documentation contains sufficient flexibility to redevelop, such as by way of termination and relocation rights, as well as the ability to redefine what constitutes the project or shopping centre. At the same time, tenants can negotiate to exert control over the impact construction may have on their day-to-day use of the premises and mitigate risk by introducing parameters around the exercise of any related termination or relocation rights.