Negotiate Extension for Delivery of Space

One thing that owners don’t like to hear when negotiating a lease is that the tenant must have possession of the space by some important date, known as the “drop-dead date.” This is an issue because the tenant usually wants the owner to suffer stiff consequences if the drop-dead date isn’t met. Free rent, significant monetary penalties, and, sometimes, a termination option are some requests tenants make.

If you agree to a drop-dead date, protect yourself by negotiating that you’re allowed an extension to the trigger date for penalties to begin under three circumstances: (1) force majeure events; (2) reasons outside of your control; and (3) tenant delays.

Ask your attorney about using this language in the “delivery of space” provision in your lease:

Model Lease Language

The date of delivery of space to tenant shall be extended, on a day-to-day basis, by the number of days of delay caused as a result of any reason listed below:

i. Any reason outside of Landlord’s reasonable control;

ii. Any Force Majeure Event (as defined in Article [insert #]) of the Lease Agreement;

iii. Any Tenant Delay (as defined in the Lease Agreement);

iv. Required inspections, approvals, site visits, or similar items required by third parties, including without limitation the federal, state, or local governments or other boards, committees, or the like with jurisdiction, unless caused by Landlord’s sole negligence; and

v. Change orders, to the extent approved by Landlord in writing.