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Standard Lease Terms (+ Pros & Cons)

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Today's Tenant Rep Tuesday Tip topic: The Standard Lease Terms, Plus the Pros and Cons of each

Average commercial lease lengths are three to five years but can extend for seven or ten years.

  • 3 & 5 Year Lease: Offer more flexibility for the Tenant and are helpful if the tenant(s) anticipates growth over time. Three and five year leases also offer fewer concessions (or tenant build-out / allowances) and the tenant may be required to pay for some buildout costs if space the tenant leases requires a lot of construction
  • 7 & 10 Year Lease: These leases have more concessions (or tenant build-out / allowances) because the landlord is able to amortize costs over a longer period of time. It ends up being a win-win situation for both landlord and tenant.

Let us help you review which lease term has the best fit for your company.


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Tenant Improvement Allowance & Buildout Costs
Types of Commercial Leases

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