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Securing Commercial Expansion Space Without Paying For It

Securing Commercial Expansion Space Without Paying For It

By Forrest Blake, Senior Vice President of SVN Commercial – Phone 310-850-2381 – CalBRE Lic # 01054174

If your company expects to grow at some point during the lease term, you’ll want to negotiate a must-take provision. This lets you lock in expansion space rights upon the start of the lease.

For example, if a tenant signs a lease for 1½ floors but knows half a floor will sit empty until next year, I’ll negotiate a must-take expansion for that space in 12 months. The tenant effectively gets free rent for half a floor over the next 12 months. If you use the Space Profitability Quotient (SPQ) your numbers will stay good as you increase profitability and square footage.

If you enjoyed this video and have further questions, please reach out.

Forrest Blake | Senior Vice President

SVN | Commercial – DTLA

800 South Figueroa Street, Suite 925, Los Angeles, CA 90017

Phone 213.618.4196 | Mobile 310.850.2381

forrest.blake@svn.com | www.svn.com

CalDRE# 01054174

 

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