Unforeseen complications often set in that can disrupt the smooth flow of events. Negotiations with Landlords often drag out over many months and deadlines for negotiations pass many times when negotiating commercial real estate. Unlike buying a home, when buyers and sellers stay up all night in order to complete a deal, a commercial Landlord usually acts in a leisurely fashion and most major negotiations drag on and on.
Once all the terms and conditions have finally been agreed upon, a Lease must be prepared by the Landlord’s lawyer and checked and negotiated by the Tenant’s lawyer. This can also take a month or longer depending on the complexity of the Lease and the lawyer’s caseload and motivation to finish quickly. As most lawyers charge by the hour, their motivation to finish quickly is not always evident.
Most times, any construction of leasehold improvements is conditional upon the signing of the Lease and construction drawings can take a month or longer to be completed. Then there is the bidding out of contracts and permits which must be obtained before construction commences.