Upgrade and Maintenance
Changes in regulations, declining conditions, and office get damaged due to natural calamities can occur in the commercial real estate world, thereby making it important for making improvements on the property for smooth and continued functioning. Below standard ADA compliant functionalities to rusting sprinkler systems to aging HVAC systems can cost your business a lot of money. So, the lease agreement must have proper instructions about who is responsible for bearing the cost for an upgrade so that you are aware of the consequences.
The majority of the commercial real estate leases have an agreement for utility costs and it is mentioned who is responsible for the costs. However, some property owners do not mention them leaving you liable for repaving the parking lot, removal of snow, maintaining the sidewalk and general maintenance. If a maintenance plan is not mentioned in the lease agreement, you must enquire who is responsible for general maintenance during the lease period before signing the agreement.
Property taxes and Rise in operating expenses
Based on your lease agreement structure, you have to pay a portion of your space’s property taxes and any other increases that may occur in the following years. In most agreements, the percentage of property tax contributions is divided by the amount of space you are occupying. But if you are the only tenant in the entire building, the owner can play a dirty game and can trick you to pay the entire property tax, and it is a huge bill you need to pay when your company does not own the full property.
Commercial real estate gives the permission to property owners for increasing the monthly rent by a small percentage every year including the maintenance cost of the building, employing maintenance and common area staff as well as repairing equipment when required. All these are acceptable but the problem arises when caps on yearly rent increases are ignored or not mentioned on lease agreements. This means you need to pay more when you are in search of office space for lease in Albuquerque ( https://absoluteoffices.com/about/ ) than what is originally mentioned in the agreement.