#4 - Holdover Clause – You must know about this clause and understand how it can affect you.  

Leases are generally written with complicated legalese designed to give the landlord an easy out on every commitment.  One area of a lease that is often overlooked is Holdover.  A Holdover clause, which is included in most leases, states the amount of rent that you will be obligated to pay for every month that you stay past the lease expiration.  This amount can range from 120% to 300% of your monthly payment.  This can be negotiated when entering into a new agreement and sometimes when renewing, but it is crucial to be aware of as it relates to the timing mentioned in #6. 

Holdover clauses, as well as other troubling clauses such as relocation clauses (and many others depending on the lease form), should be identified, understood, and negotiated prior to signing the document.

 - Stay tuned for #3 in January.  

Happy Holidays.

If you have a current or upcoming commercial real estate requirement anywhere in the world, contact Doug Works of CBRE at 760-438-8591 or doug.works@cbre.com to schedule a free over-the-phone consultation.