With the hope of securing a commercial lease for their new dental practice, the client retained Dental & Medical Counsel to review their lease agreement to ensure there were no hidden surprises threatening to jeopardize the lease agreement.
The client wanted to have their lease agreement reviewed to ensure they were agreeing to favorable terms.
While reviewing the lease agreement, the attorneys at Dental & Medical Counsel found a construction management fee listed in the agreement, even though the fees were not originally disclosed in the LOI. These fees are normally on the total cost of construction and in this example, the 1900 square foot office cost $190 per square foot for construction so that’s a $361,000 build-out and the management fee was 8% which brought the total fee that they weren’t expecting to be $28,880.
When Dental & Medical Counsel negotiated the lease agreement, the landlord agreed to pay $66,500 for the tenant improvement allowance. Had the attorneys not caught the management fee, the client would have only received $27,620, which is 56% of what they would have gotten if it were not for our discovery of the hidden fee in the lease agreement.
Dental & Medical Counsel saved their clients $38,880 from the resulting lease negotiation after the hidden fee was identified. The dental practice is now flourishing with peace of mind knowing they successfully negotiated favorable terms that will lay a solid foundation to their journey into practice ownership.