This week we asked one of our partners, Jeff Mason, to talk to our community about common client concerns. Jeff relies on his years of experience to answer the following client’s dilemma: What do you do if the building you are leasing space in is sold?
A client experienced this type of situation when the building SOLD where they were leasing space, and they were “told” they would have to vacate the premises. Did they have to move? The conclusion is that they did not have to move. The lease gave them protection through the lease term since a lease is a written, legal contract between two parties – the Landlord and the Tenant that governs the leased space.
Of course, many conditions are detailed in the contract: such as how space will be used, the terms for use, and the price the Tenant will pay. The contract will also include specific language for what happens if the building ownership changes. Not only is it important to have the real estate broker help negotiate the best market-driven price for space, but it is also more imperative to have a real estate attorney to review the lease. In this situation, the Tenant had a right to use the space even though the building’s ownership changed. There was nothing written in the lease that caused the Tenant to move until the lease was terminated.
If you have any more questions about this or need guidance with your commercial real estate, give us a call at 303-395-0111.