(Webcast) New York Office Leasing – Top Ten Tips and Traps

Thursday, November 3, 2022 | 12:00 pm – 1:30 pm

• Description
• Faculty
• Agenda
• CLE Credit
• Sponsors

• The Covid pandemic resulted in the Work From Home phenomenon, which continues today. High vacancy rates would seem to give tenants the upper hand, but this changing dynamic works in the tenant’s favor only if the tenant is strategic and knows what points to push when negotiating a lease.

  Need a strategy?

  ATTEND THIS SEMINAR! Three seasoned leasing pros will do a strategic analysis and isolate those very significant legal and business provisions (“Top Ten”) that have the greatest impact on a tenant negotiating an office lease in New York City. Some examples include:

  ·  Definition of premises
  ·  Use
  ·  Landlord’s work letter/abatements
  ·  Escalations
  ·  Assignment and sublet — exit strategies
  ·  Security/Guarantees (Good Guy Guarantees)

  Whether negotiating your own office lease or a lease for a smaller tenant, you will find an abundance of practical guidance in this CLE.

  Program Fee:
  $99 for Members | $199 for Nonmembers

• Gabriel Mancuso
  G. Mancuso, Esq. PLLC

  Jeffrey Margolis
  The Margolis Law Firm

• 12:00 pm – 12:04 pm
  Introductions/Bios; CLE Overview; What we Hope to Accomplish and a historical perspective: 2000 year old leasing Lawyer.

  12:04 pm – 12:10 pm
  #1 LOI. What is an LOI? What should it contain? What is term?  Who is the Tenant?  Is  it binding” The importance of negotiating  the LOI. 

  12:10 pm – 12:15 pm
  #2 Preliminary issues:  Condition of Premises & Space Measurement. Factors to be concerned about: electrical capacity, asbestos, HVAC, plumbing, bathrooms, electrical and fire panels, what does the certificate of occupancy provide and what are the permitted uses.

  12:15 pm – 12:23 pm
  #3 Lease Commencement, Rent Commencement, Move-In Dates  Rent Credits, and  Other Abatements.   Know when the lease can start and what happens if there are delays.  Negotiate rent credits.

  12:23 pm – 12:33 pm
  #4  Initial Work and  Subsequent  Alterations.  Know your plans as soon as possible and get Landlord consent.  Make as  few alterations to the space as possible. Determine if it makes sense for the landlord to do work as  usually it can be easier and more cost effective.  Remember that the sage advice “construction is never on time or on budget” also applies to leased spaces.  Tenants also should have the right to make non-structural alterations to the premises without the consent of the landlord. 

  12:33 pm – 12:40 pm
  #5 Costs & Obligations. How much is this lease going to cost? Taxes, Operating Charges. Other Escalations.

  12:40  pm – 12:48 pm
  #6 Electricity, Water & Services, and other Building Services.  Understand how these things are measured and charged. Three ways that landlords charge for electricity in NYC – direct meter, sub-meter and rent inclusion. The cheapest and best option for the tenant is  typically direct meter.  Understand what building services Landlord will provide such as elevator service, 24/7 access, air conditioning, extras.  

  12:48 pm – 01:03 pm
  #7  Assignment\Sublet. Critical provision as  an exit strategy.   Golden standard is landlord approval should be “not unreasonably withheld, conditioned or delayed.”   Tenant should request the automatic right to assign or sublet the space if it sells the business, goes public, transfers its assets to a related entity or merges with another.  Other Carve outs to consent to be pre- negotiated. 

  1:03 pm – 1:10 pm
  #8 SNDA & Estoppel Certificates. What is a subordination non-disturbance and attornment agreement (SNDA)? Will Landlord provide to a small tenant?  What is an estoppel certificate? How often can Landlord require Tenant to provide estoppel and what can they require.

  1:10 pm – 1:22 pm
  #9  Security Deposit/Personal Guaranty/LOC/Good Guy Guaranty (GGG).  Is the security depots cash or LC? What is a Good Guy Guaranty?

  1:22  pm –  1:25 pm
  #10  End of Term Restoration. If the tenant alters the space with the landlord’s consent, the tenant should not be obligated to restore the space to its original use when the space is vacated.

  1:25 pm – 1:30 pm
  Questions and Closing Remarks.

• New York: 1.5 Professional Practice
  New Jersey: 1.7 General
  California: 1.5 General
  Pennsylvania: 1.0 General
  Connecticut: Available to Licensed Attorneys

• Sponsoring Committees:
  Real Property, Dorothy Heyl, Chair
  Small Law Firm, Anne Wolfson, Chair

  Sponsorship Opportunities are Available! Please Contact:
  Yelena Balashchenko, Manager, Business Development & Sponsorships | (212) 382-6608 | ybalashchenko@nycbar.org