Guest Post by Sara Stanley, MCR, Managing Director, Commercial Tenant Services, Inc.

Showcasing spec spaces and “model” floors help landlords market and promote the building. These finished-out suites often show unique features to potential prospects. In today’s market, landlords are exerting significant effort to lease their emptying spaces.  

Tenants should not be responsible for covering expenses related to marketing and promotion. These expenses do not fall under operating the building. However, many tenants are inappropriately bearing the costs of certain expenses associated with these finished-out show rooms. These expenses are often concealed within other line items in operating expenses. 

Various expenses, such as those related to artwork, furniture, usage of overtime elevators, utilities, and other costs, are frequently passed on to tenants. Leases often explicitly exclude these types of expenses, yet when tenants undergo deep dive lease audits, these overcharges are uncovered.

It is essential for tenants to carefully review their lease agreements and seek professional advice to ensure they are not burdened with unjustified expenses related to spec spaces or model floors. Being vigilant about these hidden costs can save tenants from unexpected financial obligations and potential disputes with the landlord.

Sara Stanley, MCR, is Managing Director at Commercial Tenant Services, Inc.