In a recent New York Times article entitled,“Class-Consciousness in the Office Building Market”, the description of what constitutes Class A office space begins with “well maintained, with stellar ownership…”.
When looking for office, industrial or retail space, companies should always inquire about the landlord quality. Landlord quality incorporates many aspects, among them: responsiveness to tenant needs and problems, financial capacity to fund tenant improvements and to maintain the property, quality and attitude of landlord’s employees and contractors who interact with the tenants and work on the property, quality of record keeping and documentation, and so on.
Sometimes the landlord quality is apparent when touring buildings. In office buildings, are the building exterior and public spaces well maintained, HVAC grills and restrooms clean, building interior temperature comfortable and consistent, parking areas well lit, etc.? In industrial buildings, are there indications of roof leaks and are the floors, parking lots, dock doors and equipment well-maintained, etc.? If a space doesn’t show well, often (but not always) it’s indicative of a landlord who is not proactive, or at least responsive, in maintaining its properties and solving tenant’s needs and problems.
Throughout a tenant’s lease term, many issues will come up that will test the landlord quality, including maintenance and construction issues, tenant space expansions or contractions, subleasing or lease assignments, landlord waiver documents, safety, and many, many other matters. Lease documents may codify the legal relationship between the tenant and landlord, but landlord quality can make enormous difference to a tenant’s satisfaction and prosperity during the lease term.
Steven Karbank
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