The leasing market is ever changing. Many would argue the current economy to favour tenants – there are a myriad of vacant properties currently available, and a definite lack of (quality) prospective tenants available. Many tenants are looking to down size, if not liquidate, leaving landlords ("LLs")in the unenviable position of being forced to consider short term and stop gap solutions for their own cash flow purposes. Enter the commercial real estate agent, armed with an agreement to lease ("ATL") .... but beware, both LL and tenant, once signed the ATL will legally bind you to the terms specified and your lawyer will be unlikely to be able to re negotiate your lease. It is important – if not critical – therefore, that both sides fully consider the ATL in detail before signing such. A few key considerations are as follows:
Often ATL are negotiated and signed without legal input, under the eyes of a commercial real estate agent on commission. Be careful; be sensible; and if at all possible, consult your lawyer before signing an ATL.
Brandon Cullen | Partner | Albany Office
(09) 966 3609 | bcullen@mcveaghfleming.co.nz
See our Expertise page
The leasing market is ever changing. Many would argue the current economy to favour tenants – there are a myriad of vacant properties currently available, and a definite lack of (quality) prospective tenants available. Many tenants are looking to down size, if not liquidate, leaving landlords ("LLs")in the unenviable position of being forced to consider short term and stop gap solutions for their own cash flow purposes. Enter the commercial real estate agent, armed with an agreement to lease ("ATL") .... but beware, both LL and tenant, once signed the ATL will legally bind you to the terms specified and your lawyer will be unlikely to be able to re negotiate your lease. It is important – if not critical – therefore, that both sides fully consider the ATL in detail before signing such. A few key considerations are as follows:
Often ATL are negotiated and signed without legal input, under the eyes of a commercial real estate agent on commission. Be careful; be sensible; and if at all possible, consult your lawyer before signing an ATL.
Brandon Cullen | Partner | Albany Office
(09) 966 3609 | bcullen@mcveaghfleming.co.nz
See our Expertise page
© McVeagh Fleming 2011
This article is published for general information purposes only. Legal content in this article is necessarily of a general nature and should not be relied upon as legal advice. If you require specific legal advice in respect of any legal issue, you should always engage a lawyer to provide that advice.