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we strive to not only provide financing but also technical assistance and training to our small business borrowers today we also open up the webinar to members of both the White Plains and New Rochelle Business Improvement District so I'd like to extend the warm welcome to all of you and thank you for joining us today in the upcoming hour or so we will share everything with you you need to know before signing a lease or even looking for commercial space we'll cover the different lease options your rights and responsibilities and even some tips and tricks on how to negotiate the most favorable terms for you as a tenant we're very fortunate to have Kevin McCarthy with us today an expert in the field of real estate and he will lead you through the presentation in a few minutes let me just give you a bit of a bio on Kevin he's a senior associate at CBRE East Westchester Fairfield office serving the commercial real estate requirements of clients throughout Westchester and Fairfield County's series global platform also allows mr. McCarthy to offer a cross-border real estate solutions to his clients by partnering with CB Ari's offices around the globe prior to his career in commercial real estate mr. McCarthy worked at ESPN and media conglomerate distribution sales the McCarthy's community involvement keeps him connected as a lifelong resident of White Plains New York the westchester county associations young professional organization thanks again kevin for your time and willingness to share your expertise I really appreciate it before we get started let me just take equipment to walk you through the technology I hope now even though we don't have a large number of attendees I'm going to mute everyone on the call for the duration of the webinar just so that we can actually hear the presentation clearly if you do have any questions problems or concerns please use the chat or the question box that's going to show up on your GoToWebinar screen you can type in and send your questions straight to me we can interrupt the presentation for answering questions in different times and at the end of the session I'm going to take everyone off of mute so we can have an actual discussion and interaction through the phone lines also to make the presentation a little more interactive for everyone we will have poll questions throughout the presentation and we'll ask you for your personal experiences the answers to those questions are going to be completely anonymous so we do encourage you to answer using the mouse and clicking the appropriate appropriate box I'm also going to ask you to just bear with me a little bit I'm trying to control the powerpoints and the questions and all the other things at the same time so I'm gonna try but I hope you're going to be patient if it doesn't work out the way I hope it will with that I think we've covered the basics I hope you can enjoy the webinar and you're going to be able to utilize all the information I guess we're all set go ahead Kevin Simone thank you very much it's a pleasure to talk they're ready today and to try to cover all the different the leasing ability that there is out there let me first say that it's a unique process to go through and assign a lease depending on what type of business you're in many different types of leases are used and in the real estate game a landlord has a profession in which he is represented by many professionals from a real estate broker to an appraiser someone who is a legal counsel for the landlord and a lot of the time a tenant or a prospective tenant has a very big challenge on their hands to identify a fair lease that's set up with their space so with that being said the moment we can dive into the presentation and go to the next slide we're going to talk about three different types of leases today and if it's at all possible we're going to go through also some polls through the process of the presentation just to identify what a lot of you are maybe accustomed to and feel free to write in any questions that you would like in the chat the three main leases that are out there is a gross lease a modified gross lease and a triple net lease which is also in the industry we refer to it as a and and and triple net I'll dive into all three different types through this presentation many people in the calls in the past that we have done this are experiencing a modified gross lease or triple net lease so we can go to the next slide as far as it grows leaves where you typically see this is in a commercial office building some of you might be accountants or lawyers or just need a small office in a you know commercial building varies in size it can be as small as 500 square feet and as much as a hundred thousand square feet it's a lease that has the responsibility about 99% of everything in the least in terms of what is covered in your rent of your base rental rate and just for the sake of using round numbers when a landlord charges you a rent they do so in a gross lease by allowing the tenant to use and benefit the space for this occupancy which covers not only the lights and the plugs that are used to whether it's getting up and down the elevator or the bathrooms to make sure they're good working order the HVAC systems or maybe there's a day porter and some concierto security it covers everything in the lease so that you as the tenant are only responsible for that base rental rate typically in a gross lease the only number that is required to be paid above and beyond the base rent is electricity costs and as I said the types of space that have a gross lease are typically in commercial office building the typical term of those leases usually had been about five years as a minimum and since the market has soften in the economy has worsen it it's become easier to get a three your lease transaction as a normal practice but typically anywhere between five seven and sometimes ten years is what we see locally from a commercial gross office lease in that least there's an option to renew which is negotiated in terms of the exact details of that option and what happens is when you sign your original gross lease at the end typically between six and twelve months at the end before that lease is set to expire you as the tenant will have a right to use an option to renew which usually is a preferment option that is set at a fair market rate so whatever the area has been getting in terms of its rent as well as the concessions that are associated with that rent are applied in a gross lease is there a front free rent period typically you guess there is a free rent period that you see that the landlord would apply as a benefit for the tenant and we usually see the free rent apply in the beginning of the lease terms so for example if you sign a five-year lease a landlord might incentivize you to sign that lease and obtain somewhere between maybe three months or four months of free rent to start up that operation and typically in this gross lease the landlord is going to give you as the tenant that's free rent after you complete any sort of improvements or construction well maybe the landlord's completing those the construction for you what type of security deposit can one expect again this probably is more on a deal by deal basis on what type of business you have also what type of improvements are going into the deal the landlord has a cost of doing business which is he may have to pay his lawyers he may have to pay a contractor to help out to improve the space he certainly has to cover his any sort of brokerage commissions that would be do and then also what type of free rent is he putting in because that is some sort of a concession that comes out of his pocket and then lastly what type of credit you have tenant bring to the table and I think on a case-by-case basis the average deal in Westchester right now not as you as a tenant that's been improper is not on that of a fortune 500 company but or uh you can see from security deposit theater tied at six months depending on how much capital and confession the land was putting into the deal the responsibility for the build-out 90% of the time falls on to the landlord especially in is so tight everywhere you look to incentivize be tenant to do a trans I will and I will provide the filled out a tenant will hand him rent there's a five-year deal the landlord had those upfront costs GID that's the deeper from his lending capable money in and capital into the deal to his and recoup that money over the life of the lease keep doing the hold on so he could all kind of this whether or not you have a groceries I know but but maybe just take an average of your group and click whatever box and actually still exist they want to be that would help me rather than you don't have we can connect the dots right unmute tell us what kind of releases you have well we can think us we can continue on revisit us ah so we do not have a gross lease well that one no actually came from me so share something hold on okay okay you can move on to the next step of lease description which I believe is the Mata and gross this is the leaf that you as a tenant would pay majority of the cost associated yeah in the base rent and the Landlord would help with your operations a lot of the taxes that the landlord would pay would be included in that base rent there may be some areas of additional areas such as say cleaning or HVAC that in your certain business it makes sense that you take on those responsibilities whether it's to either clean your space because perhaps you need some extra cleaning you will have HVAC needs for extended hours of operation where maybe you are release your lease hours the Landlord able to give you operations from 8 a.m. to 6 p.m. but weekend hours and you have some business that you need to have cooling anything but those would be the modified gross lease would net out space typically will say it's $1 per square foot would be subtracted out of your base rent and the cleaning contract that does the cleaning for your building would be paid directly by the tenant and it would be contracted out by dismiss the types of space have any modified gross lease typically these spaces are going to be where housing operations are flex space you're gonna see some of this in some office leasing we'll have this it's usually not very typical but they do occasionally happen with a modified gross lease we don't to many landlords giving this type of lease to a retailer such as a restaurant but it is sometimes see in this case the responsibility of the build-out still typically fall on full responsibility except for the system it might be the case where you're either going to be inheriting a old system that you're gonna want to upgrade or there's no system at all and you're making the purchase and in that decision to make the purchase for the unit you're also going to maintenance that unit which would then fall outside the responsibility of the landlord and will fall onto the tenant to make sure that that it's kept in good working order we can go to the next flat I think some okay actually on the phone with the group and I guess they're all small retail operations okay well that's great we can probably didn't skip the survey set process we go right right formal number two timing is everything yeah at least which I guess most of you are familiar with is in the case where the landlord is going to allow you to occupy and sign a lease at his property to use the space but your responsibility is tenant is going to be for pretty much everything that involves the operation and maintenance of the building including the taxes and in this case whether it's the landscaping or the maintenance contracts for any of the building mechanical systems would all fall under your responsibility you're very much involved in the process of how the building is kept up with all the cleaning the condition of the roof the condition of the building systems because once you sign this lease you inherit and typically what a landlord will write in this lease is that you have to keep in good working water these mechanical systems which it sometimes can be quite the challenge and once you do sign that it's the responsibility and the costs can can get up there pretty quickly most spaces would triple net leases are found in the retail world we will see some of them in in the commercial office and warehouse settings but it's not typical in the case of the build-out typically this is done mostly by the tenant the landlord does have in some cases especially when the market right now for example is as soft as it is the responsibility can be shared or there could be some sort of incentive for the landlord to say upgrade that HVAC system so that when you move into that space and sign your lease the HVAC system which typically has a 20 to 25-year lifetime warranty will be provided to you brand new and so in year se7 you know have to worry about the HVAC system kicking out on you and having to take on the responsibility of all that repair or replacement we can go to the next slide I think Stallone oh I think everybody said they have Triple Net leasing here I think many of the group is attending they're still in the startup phase and so none of them actually has elite yet they're still out looking for space and so the webinar is mainly meant to help them differentiate all the terms and give them advice on how to best negotiate their their spaces great okay well one thing to note in the leasing especially when you're going to a triple net lease but really it's actually can be sound very useful in all aspects is when you go to the landlord and ask him what he's paying in taxes and especially now there's so much commercial inventory that is being reevaluated a lot of the municipalities have on the tax rolls assets that have been in in valued and appraised in 2005 2007 2008 when the market was good and the municipalities are collecting taxes on these assets as if they were still valued at what they were a couple years ago and I think as everybody would agree the market as soft as it is has significantly depreciated and because of that the taxes should also be depreciated so if you're signing a triple net lease you will be inheriting those tax costs which is a carrying cost every year and a landlord has the ability to get a certiorari for his building to amend the taxes so it's something that could directly help and benefit your use as a tenant also when you're in that leasing process and the landlord has some operating cost and items that they're talking about passing along to you you also have the ability to audit those and look over his previous operating history on how he runs the building a couple least as I've done they've allocated I think a dollar 75 for snow removal with the dollar 75 per square foot for snow removal annually and it's an it's an amazingly high cost so little things like that you can find in a operating budget in question because at the end of the day you as tenant will be paying for those costs so I think this slide is probably appropriate for those that are getting started with the real estate search what resources are available to help me and evaluate my needs and look for space how can the brokerage community help me there's a lot of helpful tools out there and one obviously is what I do in commercial real estate and help tenants that are looking for space and evaluating the market its conditions the markets history the different comparable deals that have been done that are tracked by the real estate community the unique part about commercial real estate in particular the brokerage aspect is in local practice and pretty much all over the United States the landlord is responsible to pay the brokerage Commission to any tenant broker typically the landlord will have his own professional real estate broker that he is hired to negotiate on his behalf and in this transaction and in his even as far down as his lending it is up proforma for all of his real estate deals there's a certain amount of money set aside to cover this feat so the nice part is for all of you tenants you can get a broker to work with you and it'll all be done so that you don't have to come out of pocket any money in addition the that you should look for online t
ere's a lot of information as it relates to different spaces that are available sites like loopnet have been useful I will say that the information on them is typically maybe they get it right half of the time in terms of what's available and the the amount of money the requested rent that's available but there are tools like that that are out there to help you in addition to the local municipalities that are looking to help perhaps with tax incentives to get you to move into certain areas that have been designated whether it's by the local ID a or even by the states that can help you with certain certain economic incentives a big question I get asked is what is the difference between usable and rentable square footage you can think of the term usable square footage which typically is seen in triple net leasing is the amount of area that you're actually going to use the carpet of alaria so if you're in a space such as a commercial office building there's area such as the elevators the common hallway the common bathrooms perhaps the area for the concierge and the atrium that is area that is additional square footage that's called rentable square footage so using round numbers if you rent a thousand square feet rentable typically the usable portion of that one thousand square feet is going to be somewhere around 800 usable square feet because of the additional we call it a loss factor which is getting into a little bit more detail than what we need to for today's call but it's an additional percentage that covers the area that's common for the entire building to use and enjoy in a triple net lease or a retail least you're not going to see a lot of rebel square footage occasionally if you go into a maybe perhaps a small strip mall where you're sharing some of the perhaps a bathroom or perhaps some building maintenance or operating items maybe a boiler that is where you can occasionally see it a slight difference but it's interesting to note especially on the office side the difference between usable and rentable parking and why it's important parking especially in the old communities here in Westchester and Fairfield County all over really has southern New York municipalities and how are very stringent on their zoning which is directly tied to parking and its ability to service parking in and around the sites you know or the controlled area by the landlord or the municipal parking lots that are going to be able to help you identify where your clients can park this is going to approve it you're going to get approval for say if a building has been in place for years and years and years and it the past had been a for the sake of argument we'll call it a bank well that's our a use that and it's not a retail location it's a it's an office for it for one of the local banks that on the tax on the municipalities zoning is approved as commercial location if they're able to lose the bank and the Landlord wants to rent it to someone else and you have a hair salon that wants to come in the parking for what would be retail could be very different than the zoning that's approved for the parking for what was the bank and if you can sign your lease with the landlord and not realize what type of parking what type of zoning you have you could have just signed the lease where you can't even operate your main profession in that location so that's why parking is important that's why you need to be concerned about zoning because municipalities are constantly changing and a lot of what has happened in the economic downturn is that you're seeing a lot of municipalities especially the larger cities I'll try to stay ahead of the curve and rezone property for more conventional up-to-date uses when you go into some communities that are more of a bedroom village or town this is especially challenging that you need to pay attention to approve you should be in the lease as well as I mentioned you don't want to sign that lease and have the landlord tell you you know your barbershop or salon is approved verbally that should all be set in writing that you haven't approved use we go to the next slide we have another poll but again I'm not really sure if that's gonna give us a lot of details maybe we'll just okay right on so assigning the lease who should review the lease before you sign it now keep in mind as I said before the landlord does this as a profession this is his livelihood he has a lawyer providing a document that is written for his benefit in his mind in his eyes for his use when you get that document you have every right to question what is in there and the term should reflect the business terms that you discussed with that landlord as well as some other business like items that need to be reviewed which should absolutely be reviewed not only by yourself but by an attorney before you look to sign that lease I can't tell you how many times people are shocked at a lease that looks very unfavorable to them and they get very turned off by the process but you have to keep in mind that this document was written by for the landlord for his benefit and you as I said every right to question that what happens if there are delays in getting permits and licenses to open how can I protect myself from paying rent for long periods when I am NOT open when you before you sign a lease you're going to go over the timeline for construction and in the case where the landlord is responsible for the construction this is probably less of a concern because he has incentives to provide the work in order to get you in so that the space can be occupied and you can start paying rent in the case where you are responsible for the construction the landlord wants to see it done quickly and there's usually a hard date that you need to meet so before you sign that lease you want to make sure that the permitting process in the local town or city that you're in you want to find out how long that process is and I can tell you right now in the city of White Plains the turnaround process for a permit is typically three weeks if you deal with the Architectural Review Board to change a sign you need two weeks these are all things that your local brokers should be able to tell you beforehand if you're gonna go down to Yonkers and try to do this as a permit it's the absolute unknown where it could take three weeks it could take three months for permitting each municipality has their respective challenges as it relates to permitting but you're in a system that it is it does take a lot of their time when there are delays in getting permits and licenses to open all you really need to be aware of is that you've allowed yourself during your negotiation period with the landlord you told him before you sign the lease I've talked with the city of say White Plains they've told me it's going to take me three weeks to do a permit the contractor that I've been talking with says he needs six weeks to do the construction that's needed for the job so the nine weeks that have been discussed with the landlord should be a part of your deal with him that goes you're not expecting to be responsible for payment on when do sign it before you sign that least how can I protect myself from paying rent for long periods of time when I'm not open again it's a negotiated point that you can approach the landlord and say I will I expect to do my construction work over - over the next two months or over the next three months I will stop paying rent when I get the certificate of occupancy from the landlord are from this from the city and show that to the landlord that's when my rent starts to kick it that's a negotiating point that you should and can make the role of the unit you of the municipality in all of this again do your homework before you go into a location that either you're aware of the process or need to confirm the process or a new municipality you need to do your homework with the building department to understand exactly how long it takes talk to the local brokerage community talk to your broker about how long typically does this village of Harrison need to pull a permit for a demo demolition or for a construction or for electrical or plumbing all of this will go and factor in very much so to your overall timing and the cost that you are going to incur we can go to next slide let's get that again but I just wanted to also say from my experience in the past year with small businesses this really is a big big issue we've seen so many people that get stuck in their leases and already paying rent for spaces that they can't use yet so if you're still in negotiations just really keep that advice and make sure you give yourself enough time and budded some extra time if you can to get everything up and running and where you can try to get the landlord to be responsible for some of the work you could tell them that even though a lot of the time a landlord does this for either the other portions of his building or another building he may own and he can do it probably better and cheaper than you can and it's sometime it's worth it to at least ask in certain aspects I've been at this part of the frigid days of renewing the lease when do I discuss renewing the lease with the landlord well you could discuss that at any time if you sign a five-year lease and your business has been in there for eighteen months and you guys are really doing well you know feel free to feel free to approach them especially now where business is so difficult and very rarely our tenants going to be comfortable saying that they can extend their lease term a lot of the time they're going to land ler is going to not expect that to come their way from from from a tenant but they would have no problem if you approach them even though the conditions of the market are soft it could play to your advantage that you wanted to extend your lease term even if you've only been in space for a year and a half you have every right to discuss that with them typically when your lease is about to expire you're going to have a notification in your lease that's going to say I have to contact the landlord in order to use the option in my lease typically anywhere for six months beforehand to twelve months before that lease expires and if you miss that day you're still able to negotiate with the landlord to stay the only thing that you miss out on is that renewal option is a set someone says if you you have a set set of rule to follow to stay for a new set of term and that term again it's negotiated it can be three years it can be five years it could be ten years whatever it might be is already in the lease that you have already signed a lot of the time in that lease and that renewal option it's gonna refer to have as what is a fair market value typically either 95 percent of fair market value or 100 percent of fair market value is the definition of fair market value kind of is what it sounds like it is what is considered the the fair price not only just base rent but to all of the concessions or any of the improvement dollars that the landlord would be responsible for that's fair market value and it's typically determined not just from what the landlord says but also the deals that are in the market or have been done recently so if you guys can go back to that broker that you used when you sign that original lease and call up John Smith and say hey John I wanted to renew that the option that I have in the lease can you do me a favor my landlords being a little bit difficult because he thinks the space is worth say $5,000 a month that I only think it's worth $3,000 a month can you let me know what the last couple of deals that were done in the area to support your cost that all comes into play with fair market value and the landlord typically is going to have the higher rents that he's going to want to push near obviously you don't want to find the rents that are going to be more on the lower side support your cost how do I exercise my option what if I don't have an option your option usually as I said those six months or nine months or 12 months forehand you usually have to set in writing to the landlord that you're going to exercise your option to renew and if you do it before that drop that date of whatever the time before the lease expires is going to be if you don't have an option it's a terrible thing but you need to negotiate the ability to renew so you don't have to guarantee that the landlord has to enter into an agreement with you it's going to be a negotiation for that extension of the lease term on the protection on a retail space for a renewal option is you spend the last say you spend a 10-year lease and you spent the last ten years building up this business and you might be a destination spot and you have you have the greatest pizzeria in town and the landlord knows that they're gonna use that to your your disadvantage if you try to extend your lease term but you don't have an option because he knows that you can't move because everybody knows where you are and there's no other location close by that you can relocate to that's where you fall into the danger of not having a option which plays into do I get multiple renewal options yes you can negotiate that right before you sign your original lease so if you wanted to put in there I need two or three different four new options that should be acceptable to the landlord what is a lease amendment so when you do use that that option in the lease you're going to tell the landlord notify him that you're interested in standing longer term you put in writing and you send it over to his attention the option to renew I'd like to use he's instead of trying to draw up a brand new lease agreement that's going to add many hours onto your review your lawyers review review or both the landlord's going to send you a short amendment to that lease which usually is only a couple pages in length that is going to inherit all of the other terms that were in the original master lease and it's going to change very slightly the term of the dates in which you're going to be allowed to lease that space as well as some of the business items such as what you're paying in rent or if there's any free rent or change to the electricity or any of the other operating items that might be amended we can go to next slide terminating a lease a lot of the time people want the flexibility to get out of a long term contract especially nowadays if a tenant is asked to sign up for 10 years a lot of them can't tell you what they're going to be doing in 12 months so they want to have the flexibility to terminate you can negotiate this right before you sign the lease during the negotiation period and put in there your ability to terminate at a certain point in time landlords hate termination options and the reason for that is again if you sign that 10-year lease and the landlord is going to book your encounter in your lease revenue as income the land was going to take you release and say well listen I've got John Smith for the next 10 years in this space he's a good credit tenant and I'd like to refinance my building can you please let me know how much money I can take out of it because I have this contract at least with this tenant if you have a termination option in that lease that 10-year deal that the John Smith tenant is will only say if we have a termination in the fifth year the bank and landlord can only value that lease at contract not for 10 years but only by 5 years that's the only guaranteed monies that are going to be coming in so termination options are very difficult to get and there are certain penalties involved in order to use a termination option under what circumstances can I terminate the lease before it's expiration if you haven't negotiated a termination right which usually say again in that 10-year deal that we've talked about that Johnson it has if you want and have successfully negotiated a termination option in the fifth year you're going to have to probably provide notice somewhere between six months and twelve months notice to the landlord in writing to use that termination option and usually the landlord's going to require a payment penalty could be anywhere from a month's rent to six months rent depending on what type of improvements and infrastructur
that landlord has made to you as the tenant that they've put into the deal what are my rights and responsibilities what will I lose your rights on this termination is that you have the ability to get out of that lease your responsibility is to notice notify the landlord should you use that lease and typically what you lose depending on if you terminate it or not typically though is the penalty that we just talked about the only actually the one point I did not make is under the circumstances what circumstances can I terminate the lease before it's expiration if you do not have a termination option and in some cases we don't want to go through this but the landlord does not live up to its responsibilities in the contract of beliefs and exam might be that it's the landlord's responsibility in the least to provide quiet enjoyment or the landlord responsibility to provide access to the HVAC system that it will service the building and say in your near to of your lease the HVAC system breaks and the lamina refuses to replace it that's a situation where the landlord is if it's responsible for the HVAC system and the lease they not providing that HVAC operation can be looked at as a default of the lease and you might be able to get out of that least commitment because you are not receiving benefit for the contract that you signed now the last point on this page is what happens if I have an opportunity to move to a better space well if its width o if the space is with the land law that you currently have you can approach them to move to that better space if that space is in another building and you're in that lease and you do not have a termination option you are stuck you are you do not have the ability to be in that lease for any more time unfortunately so it's one of those that you have to pick your space wisely before you get into it design that sign that lease we can go to the next slide I just have a quick question so what happens in the worst case scenario and the business goes out of business I mean what are the legal consequences that they're going to face from their landlord if they you know the business is failing they need to get out yes well the landlord if you were to default on the lease and you stopped payment depending on your security deposit the landlord can go after the money that's in a security deposit and they can also go after you for the other monies due under that lease you can obviously go into file bankruptcy and seek protection that way but the it really all down to the entity that is signing the lease so if if you are you are personally signed at least the landlord can go after you personally if you are signing a lease as a shell company that is going to be in use just for this business the landlord would only be able to go after that company now it's very tricky because a landlord that has done his homework will be able to know what type of entity he's receiving because he's gonna want an entity that has the most credit so that he is not having to worry about trying to track track someone down if they skip out on their lease commitment and waste responsibilities the right to ask for as a tenant so before you sign this leach in your negotiation period it's always important at least to ask you might not receive it but at least to understand it do you have any ability to expand is the store next to you vacant or is whether is there least gonna expire soon well I want to be able to have the right to expand on that space the right of first offer or the right of first refusal is typically what those are called the right of first offer is that the landlord is going to offer to you and you have the ability to either take it or not take it the right of refusal is the landlord has to not only offer to you but if someone else comes along and looks at that vacant space next to you they have to tell the landlord has to tell you hey I'm going to lease this space to this other company do you have any interest in it and he has to do that throughout the remainder of the lease if you've negotiated that right of first refusal so you all the time have to be able to refuse that space in order for the landlord to lease that to someone else subletting rights are something that's also very important do you want to know what type of ability you're going to have to sublease your space you want to know if the landlord has the ability to deny your ability to sublease your space you want to know if there's any competitive issues of our that will allow you to I'm sure will not allow you to lease that subleased that space so there could be some sort of non-compete clause if you again are that that chair salon and next door to you is a pizzeria owned by the same landlord he might have a condition in the lease where you're not allowed to sublease your space to a pizzeria because the next door neighbor neighbor in pizzeria has a non-compete clause those are always things you need to look at and research before you sign police what type of sign is rights do you have do you have to have a certain color awning you have to have a certain style of sign is the municipality going to allow you to have a sign is it going to give you a already predetermined size of that sign or type of sign a lot of the more ahead of the curve thinking municipalities have all sorts of signage that needs to be reviewed and approved so you could or you could have all the visions of the world of putting in a 30-foot sign to draw your customers in if you don't you know that has a ordinance against those signs or a certain type of style that's what you're gonna have to use going forward do you have any roof rights do you have the ability to put a sign on your roof does the landlord have the ability to put other mechanical systems on your roof does it have the ability to use your roof as a cell phone antenna all those things go into play with regard to your lease you're gonna want to know what can and cannot be done on in your roof is there a relocation right so the landlord has the ability to move me sometimes this happens in cases where the landlord has a very large piece of property and you occupy a very small percentage of it he might look to try and relocate you because if you're only a small tenant for using round numbers again if you're a thousand square foot tenant in his 50,000 square-foot building he's going to want the ability to relocate you if you if he finds a tenant of say 20,000 square feet and put him in in a portion of your space that's a typical move that a landlord will require for his lease so I'm going to keep in mind I get the next five to room at least commencement and the move-in process so when everybody signs their lease and you try to get the construction done on the process before moving in this isn't really going to take place a lot in the retail world but for those of you that are opening up an office FF&E as fixtures furnitures and equipment that you have the right to install cabling all your phone systems and IT should be able to be moved into the space while the construction process is coming to a completion so that may be the last two or three weeks of the construction job you should be able to move that equipment and furniture and fixtures in and your your rights as a tenant before moving into the spaces the limit just has to provide access to that we can go to the next slide so thanks again Kevin so if anybody has questions now I can send a little chat message around to everybody that you can either use your microphones on your computer if you have that ability or you would have to dial in with your phone to actually be able to bird so I am muted everything from the microphone so like we should be able to hear you if your microphones work
