Presentation: Commercial Leases – Current Trends

Commercial Leases – Current Trends

November 2015

Commercial Leases – Current Trends

The Baltimore County Bar Association Real Property Committee presented “Current Trends in Commercial Leases” on November 17, 2015 as one of its Brown Bag lunch Series.
Chris Mudd, Chair of the Committee introduced Doug Burgess, Chris Wright and Tim Gardner, the presenters. Chris and Tim are with the commercial real estate brokerage firm of KLNB in Towson, MD and presented the current trends from the potential client’s perspective including site searches, space and utilization analysis, market surveys, leasing terms, timing and planning needs. Also discussed were listings, offering statements, brokerage, term sheets, letters of intent, parties, use, term, rate, tenant improvement, parking, signage, visibility, access, space and calculation of space, triple net lease, gross lease, pro forma budget, escalator, renewal term, expansion rights.

Doug Burgess, attorney, gave his perspective on lease review and negotiation. He noted that potential clients have varying levels of sophistication. Some potential clients have a high level of knowledge based on the representation that they have received in the nature of brokerage advice. This level of sophistication as well as the relative bargaining position of the parties has a great effect on the latitude within which the attorney can operate to consummate the lease deal. Mr. Burgess then went through a sample lease red line and talked about edits an attorney can make to a proposed lease.
Many hand outs were presented including the following: lease review checklist and request for proposal.
Mr. Burgess also presented Commercial Real Estate Contracts to the Committee on January, 14, 2015.
Materials related to both presentations can be obtained from the Baltimore County Bar Association office.
The Real Estate Committee will continue its series of Brown Bag lunches in 2016 with other topics.