7/7 lease vs 5/5/5. Representing user

User is restaurant/bar. Negotiating extension of lease - current 7/7, owner would like 5/5/5. I see no advantage to my user to go away from the 7/7 - am I missing something? thanx
In Leasing Property - Asked by Robert P. - Nov 20, 2010
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Answer(s)

David P.
Developer
San Francisco, CA

The user is trying to create flexiblity in their lease obligation. Maybe suggest a longer term but give a termination right with penalties.
David Polatnick
415-305-4836

Nov 21, 2010
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Roger O.
Broker/Agent
Tarzana, CA

A 5/5/5 with terms equal to or better than the 7/7 is actually more advantageous to a user. Tenant ties up property for 15 yrs. but has the flexibility of walking on the 5th or 10th yr.

Nov 22, 2010
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