Lease Negotiation With Construction in View

Possession and timing

The date you receive the space and the date rent begins can be far apart, or not. Fit-outs take time, so ask for enough rent-free time to complete design, permits and construction.

Include a clear process for delays, such as late landlord approvals.

Fit-out timelines are often longer than expected once permits and material lead times are counted. A realistic schedule at the start prevents paying rent on a space you cannot yet use.

Who does what

The lease should state which work is the landlord's and which is yours. Ask that the base building be delivered in good working order, including mechanical, electrical and structure.

Unclear language here is a common source of dispute. A contractor can read the clauses and tell you what they mean in practice.

Allowances and approvals

If the landlord offers an allowance, confirm what it covers and how it is paid. Check whether your drawings and contractor need approval and how long that takes.

Ask for a reasonable timeline and deemed approval if the landlord does not respond.

Also check that the landlord's insurance and indemnity requirements for contractors are reasonable, since these can add cost to the build.

Rules for the work

Many buildings have rules on working hours, deliveries, elevator use, insurance and roof access. Know these before you price the project.

Rules that limit work to nights or weekends raise costs.

Ask early about hours for noisy work and the use of shared loading areas.

Where we help

We review construction-related clauses and prepare an estimate before the offer is signed. Because we self-perform electrical, mechanical and interior work, we can price those items directly and give you a number you can rely on in negotiation.