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Hidden Risks of Leasing Retail Space
When leasing retail space, tenants generally negotiate key specific business terms, such as rent, term, termination rights and the scope of construction. However, there are often lesser known or “hidden” risks that may not be addressed by tenants in their lease negotiations. These types of risks include availability of utilities, ceiling heights, differing floor elevations within the space, unusable space within the premises, and zoning and parking restrictions, as well as access limitations. This article addresses certain of these concerns and discusses how a savvy tenant may choose to address these items within its lease document.
Availability of Utilities
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