Ensure Owner Delivers on Incentives
Guarantors who will back up the obligation of tenants who default on their leases are widely used for commercial real estate deals. But don’t forget that tenants aren’t the only parties that guaranties apply to. Getting a great deal on space is fantastic for tenants, but if you’re concerned that the incentives the owner is offering to make the space more attractive might put it in the red, protect yourself. A year of free rent, greater contributions to tenant improvements, and base building renovations all cost significant amounts of money on the owner’s part.