The devil is in the details: commercial property leasing

Eric T. Kirchenstein

Eric T. Kirchenstein

As a commercial real estate and business law attorney, I have seen a variety of business models and strategies for leasing and purchasing commercial space. With a few exceptions, large companies often lease regardless of real estate market conditions, and many small businesses want to buy their own space. For many businesses, much like people, the choice to lease or buy property is contextual, often unsurprisingly due to perceptions of the state of the property market and the resulting psychology. It seems to be related to science.

Similar to how people react to the stock market, often with the mindset that companies need to ride the tide and buy as the market rises or avoid buying at the first sign of the market going sideways. As with most things in life, the answers are actually nuanced and depend more on the specifics of the situation than the ups and downs of the market. To keep the door open for purchasing corporate lease space, there are various options that can be drafted into commercial leases.

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