Developer

When leasing commercial office or warehouse space, one of the most important, and often misunderstood, negotiation points is how the space will be built out. Two common approaches are turnkey tenant improvements and a tenant improvement allowance (TI allowance).

Many tenants believe that negotiating a commercial lease starts and ends with the rental rate. While rent is important, it is only one variable in a long list of terms that determines the true cost, risk, and flexibility of a lease.

When leasing commercial space, rent is often described as either NNN (Triple Net) rent or full-service rent. While the numbers may look similar at first glance, these two structures work very differently and misunderstanding them can lead to higher-than-expected occupancy costs.

Since the onset of the COVID-19 pandemic, the commercial real estate landscape has shifted significantly, especially in markets like Seattle.