Commercial building missing lease

[Brock Hoffman]

Hello BP community,

This is my first commercial project, and I am super excited and trying to do everything I can to make this project a success. I am under contract on a 15,000 square-foot commercial building and do not have a lease yet for one of the tenants that is renting out the second and third floor. My realtor has asked for the lease several times and they have yet to produce it, we were told the tenant is month-to-month. This is a big issue. If it is not as it totally changes the projection of the project another thing to note is we were told the tenant on the bottom floor was month-to-month and when we got the lease, it actually expires in November, so my concern is we may get a lease and it’s not going to be month-to-month, or we’re not gonna get a lease at all. Any thoughts or ideas other than keep asking my realtor to push them to find the lease would be greatly appreciated and thank you in advance.

Thank you,

Brock Hoffman

[Chris Seveney]

Quote from @Brock Hoffman:

Hello BP community,

This is my first commercial project, and I am super excited and trying to do everything I can to make this project a success. I am under contract on a 15,000 square-foot commercial building and do not have a lease yet for one of the tenants that is renting out the second and third floor. My realtor has asked for the lease several times and they have yet to produce it, we were told the tenant is month-to-month. This is a big issue. If it is not as it totally changes the projection of the project another thing to note is we were told the tenant on the bottom floor was month-to-month and when we got the lease, it actually expires in November, so my concern is we may get a lease and it’s not going to be month-to-month, or we’re not gonna get a lease at all. Any thoughts or ideas other than keep asking my realtor to push them to find the lease would be greatly appreciated and thank you in advance.

Thank you,

Brock Hoffman

Stick to your guns and absolutely require the lease. If they cannot provide one the deal should be based on a new mutually agreeable lease agreement.