Business owners who are searching for business office house for hire have quite a few options available to them. Long-term leases, annual leases and month-to-month options are the most common types of leases coworking space pune. With that said, most leases are longer-term in the 3-7 year range, and they reflect the market conditions that were in effect at the start of the lease term. So, what happens when a company’s need for business place changes midway into its lease term? or what happens when market conditions change dramatically, but the company still has considerable time left in its lease term? Is he stuck? The short answer is: not necessarily.
A relatively new type of lease has emerged which business owners have found to be advantageous to their leasing situation, and that is the mix and increase lease. These leases relate to tenants and landlords who are in a current lease relationship, and want to lengthen the lease for an additional term while in the midst of their current lease. When a blend and lengthen lease is initiated, the parties also get to alter the terms of the lease which is an additional benefit to such a lease. The following will highlight more information regarding the mix and lengthen office lease and cite the various pros and cons of such an workplace area rental agreement.
What You Should Know About a Blend and Increase Lease
The first thing which commercial property owners and renters need to know about is that there must currently be a lease in place between the landlord and business owner tenant. As the purpose of a mix and prolong lease is to get an early renewal with lease term changes it goes without saying that there must be an active lease agreement at the time in which a blend and increase lease is discussed.
You should also be aware of why a blend and extend commercial property lease is desirable. Commercial business office leases are often lengthy in duration and this makes altering terms more difficult as when compared to an annual lease. With that said, landlords do not like to take chances of having their office area be empty once their current tenant’s lease expires. With a blend and extend lease, tenants benefit by negotiating for a more favorable monthly rent and lease terms and landlords benefit by ensuring that their current tenant remains in the premises for years to come.
The Pros of a Blend and Lengthen Place of work Lease
There are many benefits on both sides of the lease relationship associated with an office environment house mix and prolong lease. The landlord favors a blend and prolong lease as it guarantees them that their workplace area will not be vacant for long periods of time. In today’s economy, office environment rental demand is on shaky ground as are many other business-related aspects and the landlord can have peace of mind knowing that its tenant will be in the business house for years to come. This will increase the chances that the landlord can cover the mortgage payment every month and not have to worry about paying a real estate agent to find replacement tenants for them.
For the tenant, a mix and extend lease works in their favor by providing them with the opportunity to renegotiate the lease terms and oftentimes renew the lease with a less expensive monthly lease. The lease is not the only thing which the tenant can renegotiate in a this kind of lease. Rental abatement, options to renew, expand or contract and office environment space improvements are also negotiable points in the new and revised lease.
The Cons of a Blend and Increase Commercial Business House Lease
As with any negotiations, there may be some less than favorable aspects of a blend and increase lease. With regard to the landlord, although the blend and prolong lease provides the landlord with a longer lease term in which the tenant is required to stay in the building, the landlord may have to accept a lower monthly hire payment as well as agree to place of work improvements and other concessions. As for the tenant, it may receive a more favorable monthly hire under the mix and lengthen lease, but it will be locked in to the office environment area for a longer period of time and not be able to move from the workplace should it desire to do so a few years down the road.
In The End A Blend and Extend Lease Is a Good Option
When all is said and done, a mix and extend lease can often be a good option for both landlord and tenant to consider. If the landlord/tenant relationship is a good one and the business building location works well for the tenant, then there really is no reason to ignore the blend and prolong lease option. Even with the few potential negatives listed above, the pros often times outweigh the cons of this type of lease. A mix and prolong business lease ensures that the business office property remains rented and the tenant gets a better deal than it had previously. It is easy to see why blend and increase leases are becoming much more common in the commercial real estate market-place.