Facing The "Big Unknown"

New Building Issues

Negotiating offers and leases for new space in an existing building requires careful consideration of a number of issues such as landlord's work, possession date(s), fixturing period(s), improvement allowances and remedies (if any) in the event of delay, along with all the other lease issues dealt with by landlords, tenants and those that represent them in commercial lease transactions. The big unknown factor is the possession date. In most cases, the experience and expertise of those involved can reduce the unknown element to an acceptable range that gives both parties sufficient flexibility without inflicting financial hardship on either.

The big unknown, however, gets even bigger if the building has not been built and the only thing to look at is a handful of concept plans and specifications. Three to four years is the average time it takes for a downtown high rise office building to be constructed in major urban centers. Delays of all kinds,