Choyce Peterson Announces New Demand for Lease Abstracts; Request for One-Page Summaries May Reflect Uncertain Economy

Stamford, CT, Jan. 12, ‘10 ¾ Choyce Peterson, Inc. (www.choycepeterson.com), a commercial real estate brokerage and consulting firm, today announced it is experiencing a significant increased demand for lease abstracts, one-page summaries of up to 30 key components in larger commercial leases, typically 40-to-75 pages long.

The company has been approached by area businesses with up to two years remaining on their original lease, with a request to explore new options in today’s marketplace. Companies have also expressed concern about areas of liability and the possibility for renegotiations, renewals, relocations and space modifications.
 

John Hannigan, Principal of Choyce Peterson, said, “The demand for lease abstracts is greater today than I have seen in more than 20 years in the industry. Both our prospects and clients alike are curious about their obligations and opportunities in Fairfield and Westchester Counties, especially due to continuing uncertainty in the real estate market. We have found unusual clauses and hidden language in some of these leases, often to the tenant’s detriment.”

Hannigan went on to describe his company’s one-page lease abstract and its ability to summarize all of a company’s rights and options in the full document. These options can include a right to cancel the lease, reduction of the original security deposit, rights to expand or hidden liabilities.

Some of the other key components are option notice dates, sublease and assignment guidelines, alteration restrictions, holdover and default penalties, and restoration obligations.

Alan Peterson, Principal of Choyce Peterson, concluded, “C-Level executives are starting to realize the profound impact of a lease on their business.  Every single word in your lease either defines your “space” or what it is costing you. It dictates expenses and stipulates deadlines, spells out a landlord’s responsibilities and a tenant’s options. Typically, a physical lease, once executed, is buried in a filing cabinet where it remains for months, or even years.”