Restoration Clauses
Five years ago, you opened the doors to your business. You did everything right and now it is time to expand! Over the years you made improvements to your leased space as you saw fit. You added carpeting, walls, offices and conference rooms. You have your new lease signed, movers are ready and just because you like to be on top of things you even gave your landlord 60 days’ notice. On your last day as a tenant, your landlord stops by to wish you well, and hands you a notice that you have violated the Restoration Clause in your lease. If you do not repair the space back to the way it looked five years ago, you will be sued. Thanks for being a perfect tenant!
The excitement of opening your own business is tangible. Selecting your space, envisioning how the office will look, how happy your clients will be and how far you have come. Most real estate agents can schedule showings and do the research you require. However, is your agent comfortable in understanding and negotiating a commercial lease? Were you or the agent aware of the restoration clause? Why didn’t your agent request that it be removed prior to you signing your lease five years ago? More importantly, why were you surprised by this?
At IMT Realty, we have over 25 years of commercial lease experience. We began in Manhattan working on 5th Avenue and were honored to be part of the implementation team during the sale of the World Trade Centers in 2001. Our team is dedicated to act in your best interest and ask all the right questions. We ensure you keep you informed every step of the way, and never leave you surprised.
If you have questions or would like a free lease abstract as a tenant or landlord please contact Tim at IMT Realty.
