Found a great commercial space at a greater price, what's the catch? (
I found a great place for my new business in NYC with an amazing price today; the agent told me that currently only a 2 year lease is available. I asked "why such a short lease?" and they said the current owner of the building is going to be taking a new "partner" and they are unsure what the partner will want to do with the property. I suggested that if I did a two year lease, I would want a clause in the lease that said I had the right to extend the lease for 5 more years after the 2 years were up and the agent said they could definitely bring that up to the owner. It seemed a bit sketchy to me that the rent was so cheap. I would also only definitely sign a lease if the 5 year extension is available after the 2 year. My question is, is there anything the owner can do to prevent me from resigning after the 2 year lease is up? Is there anything else I can do or put in the lease agreement to protect myself? I don't want to spend money building out the space to have to tear it down 2 years later.

Thanks in advance!
[{"id": "do64137", "text": "If it's a true option, no, there's nothing the owner can do to stop you from exercising it, but there may be catches in the lease about it being exercised, like you can't have ever been in default or there may be tricky notice provision elements to exercising the option. Basically, they can't stop you, but they can make it harder for you to do right. ", "replies": [], "depth": 1}, {"id": "do648pp", "text": "Sounds like his partner might be bringing some cash to the property for a potential reposition.  They don't want you locked in for 5 years+ when they may be able to get a lot more rent in 2 years with some renovation.  I'd squeeze them for more info on the owner's plans, share your concerns, and negotiate something that works for both of you. ", "replies": [], "depth": 1}, {"id": "do72ts7", "text": "You've already gotten good advice so I'll just add my $.02. Have them pay for the buildout and have them amortize the cost over 7 years? You might have to move but at least you won't really have to pay for the upfront costs. ", "replies": [], "depth": 1}, {"id": "do75v9s", "text": "Here's the catch: the lease is extremely short for a commercial lease. I suppose that some people need a 2 year lease, but the vast majority of commercial tenants would rather have stability. That means a bare minimum of 5 years. \n\nIf they won't give you seven years right off the bat, they are sure as Hell going to try to kick you out after the initial 2 year term, option or not. ", "replies": [{"id": "do7vzjn", "text": "None of my clients ever will do 5 without an option to renew another 5. ", "replies": [{"id": "do7yhey", "text": "At least!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dorvmoe", "text": "Do a normal length lease with a demo clause that they pay you to vacate if they are doing something with the building. Otherwise find another space!", "replies": [], "depth": 1}, {"id": "doztgu6", "text": "Sounds like they want you to fill space for 2 years before remaining leases run out that they can tear the building down. Or something similar to that. ", "replies": [], "depth": 1}]