When choosing Office space, it is important to remember the time sequence of steps, which is very important and often influences decision-making.
The comfort zone for choosing the right offices usually lasts 6 to 9 months.
At the same time, the continuation of the termination from the existing premises to the signing of the new Rental Agreement requires many steps that are process and time consuming.
“Therefore, besides negotiating contractual terms, the consulting company representing the client should coordinate processes to meet the deadlines and especially with the aim of saving time for client.” states Michal Rudinský, Head of Office at 108 Agency Slovakia.
Following the aforementioned time horizon, the first step is the analysis of the market and the subsequent selection of potential options for new offices. Individual inspections to obtain final offers and layout proposals often take 2 to 3 months. The subsequent negotiation of the Lease Agreement is extremely important for grasping time and space flexibility for the lease. The final step is the design and subsequent construction of the premises.
In case of changing office space, it is important to think, inter alia, of the mechanism set up for the termination of the original lease and the consequences thereof. In most cases, the terms of the termination of the lease are regulated “tailor-made” directly by the Lease Agreement. In order to avoid the risk of an invalidly terminated lease, it is important to thoroughly study the lease and evaluate any consequences associated with the possibilities and ways of terminating the lease. In our practice of commercial real estate attorneys we regularly address the question of how (prematurely) the lease relationship can be terminated, say Michal Kilian and Oliver Majdúch, lawyers of SHIN & MAJDÚCH Legal.
The parties often negotiate in the lease contracts various institutes allowing the unilateral termination of the lease by the lessee before the expiry of the original lease term. However, it is essential that these institutions are properly applied in terms of their legal effects.
Undoubtedly, even when negotiating a new leased item, it is necessary to respond to a number of related legal issues. These are e.g. fit-out adjustments of premises according to tenant’s requirements, time frame for handover of premises to tenant, various hidden fees, etc. Most of these issues can be initially addressed under the Heads of Terms signed by the negotiating parties before the lease is concluded. If a tenant’s relocation is to be economically advantageous, tenants must correctly assess all the benefits and often hidden pitfalls associated with the relocation.