Assuming Occupancy

Various time frames for assuming responsibility of a commercial space can apply. If you are moving into a simple studio space, you might be able to walk in and set up shop immediately, with very few obstacles. However, if you are setting up a space that requires build-outs such as erecting walls, computer connectivity, ADA compliance or other additional space features, then you do not want to be responsible for the space on the same day that you sign the lease. 

Key dates of the lease include:

• When can you officially move in?
• When must your insurance coverage start?
• When can your designer or contractor begin working in the space?
• When will the landlord’s contractor begin working?
• When must your business/organization open for business?
• Will there be rent abatement (full or partial) during the build-out period, if you -- not the landlord -- are paying for the work? 
• Will the landlord provide some type of abatement if s/he is paying for the build-out work?

Beware of date clauses that begin with "As of this date." This vague statement can make you immediately responsible for a space that you may be weeks or months away from actually inhabiting. A date set by this phrase becomes especially troublesome when it is the only date in the contract. The phrase “takes possession of” also needs to clearly identify which rights you have on that particular day. 

Make sure the lease defines when start dates take effect, and the remedies and consequences that result from missed deadlines.