A new federal contract has helped fill in the last available space in a Phoenix office park. The business park expansion is expected to result in a positive impact on the city’s employment market.
TriWest Healthcare Alliance, which does healthcare contract work for the United States military and U.S. Department of Veterans Affairs, has expanded its horizons in Phoenix. The health services provider recently won a five-year, $4.3 billion contract with Veterans Affairs. The contract will require approximately 275 new employment positions which necessitated the workspace expansion. The company leased up all of the remaining space available at the Marconi Research Park in the northern part of Phoenix. The commercial lease agreement includes nearly 55,550 square feet in the business park.
Owners of office parks receive a lot of exposure to various companies looking to rent property. Working with a variety of occupants may be a confusing venture, however, as terms may be negotiable from lease to lease. The market for commercial property is much different from that of the residential realm. Understanding the significant differences between commercial lease agreements and residential leases may be the difference between success and failure for a commercial property owner.
First, it is important to note that commercial leases sometimes offer fewer legal protections regarding deceitful landlords since business people are assumed to be more knowledgeable. Additionally, commercial leases are atypical in that they often include accommodations specific to each tenant. Standard forms for commercial leases are much less common as compared to residential leasing. Along the same lines, commercial lease terms tend to be more negotiable and subject to change. Lastly, while many residential leases are no longer than a year, many commercial lease agreements continue on for several years at a time.
Commercial lease agreements often include substantial dollar amounts and extended periods of time. This means that consulting with all available resources regarding upcoming agreements is crucial in order to conduct one’s company in the most profitable and business-savvy way possible.
Source: Phoenix Business Journal, “$4.3B federal contract prompts lease-up of Phoenix office park,” Mike Sunnucks, Dec. 8, 2014