If the lessor wants to modify the leased property, should the lessee be responsible for any of the cost?

In Leasing Property - Asked by Barbara R. - Nov 23, 2009
Report Abuse
Answer this Question


Paul C.
Henderson, NV

It would depend on the Lessee's lease, and the verbiage pertaining to Capital Improvements within the lease. If the property owner is making such Capital Improvements, then yes the expense would typically be passed on to the Lessee on a pro-rated basis based on the life of the Capital Improvements expense.

Nov 24, 2009
Report Abuse
Chris R.
Denton, TX

Depends on many factors. What is being done to the space and who would benefit from it? Could certainly be negotiated between the parties. Good opportunity to go to the tenant, discuss what is being proposed, costs and see if tenant could be negotiated to participate. Could be in terms of cash or increased rents. Some such expenses may be able to be passed on to the tenant via the lease if allowed. Some could be worked in to a lease extension or renewal - good for all parties. Scott Brown Commercial RE

Dec 1, 2009
Report Abuse
Gregory G.
San Francisco, CA

All depends on the lease.
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
Web Reference: http://www.gregorygarver.com

Dec 3, 2009
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question