Do I have to obtain all permits if the complex is doing the build out on my leased space?

I am considering leasing space in a plaza. The management has a company that does all of their build outs. This seems to be easier rather than hiring someone myself. How does this affect my rental rate? Do I obtain all permits before the contractor gets started or this is calculated in my square footage?
In Leasing Property - Asked by corliss M. - May 14, 2012
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Answer(s)

Michael E.
Broker/Agent
Houston, TX

The company doing the build-out should be getting the permits themselves.
As far as affecting the rental rate, there are a couple of ways the TI (tenant improvements) can be handled. The first is amortize the cost of the TI over the term of the lease which in turn will increase your rate. The other way is for you to pay for the build-out. This will require you to come out of pocket for the expenses. In exchange for paying for the TI, you may be able to ask for free rent or a reduced rate. Either way, the TI needs to be paid for.

May 15, 2012
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Drew B.
Broker/Agent
Little Rock, AR

Whoever is doing work would get the building permits.

May 17, 2012
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