Tenants are generally provided time to prepare the retail space for occupancy prior to the date when they must begin paying rent. However, in hot markets and for some very desirable properties or spaces, landlords will be able to require that tenants pay for retail space beginning at the time the lease is executed. In such cases, it is possible the tenant may pay for space for four to 12 months, or even longer, prior to commencing operations within the retail space. However, this is the exception rather than the rule. In most cases, tenants are provided a reasonable amount of time to prepare the space for occupancy.

The lease should address the contingency regarding what happens if it is not possible to occupy the retail space on the contemplated date. For example, there could be delays in obtaining signage permits, usage permits, construction permits, and in completing construction due to a union strike.

The condition of the space which the landlord provides the tenant and the tenant improvement allowances both require careful consideration and documentation. If the retail space is currently built in a configuration which does not suit the prospective tenant, will the landlord demolished the existing improvements and dispose of the debris?

If the landlord is providing a tenant improvement (TI) allowance, what are the mechanics of performing the construction and funding the cost of construction? If the cost of the construction is less than the TI allowance, is the tenant allowed to keep the excess funds? Is union labor required?

Is the tenant required to use a general contractor? Should the landlord be compensated for inspecting construction? Alternatively, is the landlord required to provide space which complies with an agreed-upon set of plans at its own expense?

If the space is not currently ADA compliant, who should pay for the cost of making it ADA compliant?