Addressing Tenant Alterations in Commercial Lease Negotiations: A Landlord’s Perspective on Silent Lease Issues

August 24, 2025 | Author:  David J. Murphy

Alterations are among the most important aspects of commercial lease negotiations. While tenants may seek flexibility to adapt leased premises for their operational needs, landlords are equally concerned with preserving the value, structural integrity, and appearance of their property. Issues around alterations can range from the right to approve contractors and require landlord consent for certain works, to the scope of changes allowed without prior approval, and the procedures for restoring spaces at lease end.

For both parties, understanding and negotiating clear alteration provisions is vital. These terms impact not only the daily use of the premises, but also the long-term interests of both landlord and tenant, making alterations a central focus in any discussion of “silent” lease issues.

Acceptable Contractors

Tenants frequently request to attach a list of pre-approved contractors, architects, and vendors to the lease, seeking to ensure their desired team can perform necessary build-outs. They may also insist that vital contacts cannot be removed from the list or demand a broad selection.

Landlords should retain the right to approve all contractors working within their buildings. Approval should be based on objective criteria such as licensure, insurance coverage, experience, and compliance with building regulations. While landlords may allow a tenant to propose additions to the list, final approval should always rest with the landlord, who can remove names only for valid reasons clearly stated in the lease. This approach ensures high standards are maintained without unreasonably restricting tenant choice.

Flexibility

Tenants seek broad latitude in selecting consultants, architects, and contractors throughout the lease term and do not want to be restricted to the landlord’s original approved list.

Landlords should allow reasonable flexibility but require a consistent vetting process for new team members proposed during the lease. Approval procedures should be applied uniformly and documented in the lease, ensuring operational safety and protecting property standards.

Consent Requirements

Tenants routinely ask to limit the instances where landlord consent is required, focusing especially on nonstructural or minor alterations that do not affect the building’s integrity or systems.

Landlords may categorize alterations based on risk. For trivial, cosmetic, or strictly interior changes, landlords can accept simple notification rather than formal approval, so long as changes follow defined parameters. For anything impacting structure, building systems, or legal mandates, full consent should remain required and lease provisions should define clear, objective grounds for refusal.

When Consent Is Not Required

Tenants want categories of changes such as minor partition moves or decorative updates exempted from the consent process to streamline operational flexibility.

Landlords may agree to waive consent for changes defined by cost (e.g., below a set dollar threshold) or type (nonstructural, non-system). However, all such alterations must comply with building codes and should not interfere with neighboring tenants or future leasing plans.

Proprietary Design Features

Tenants who consider office layouts or operational flows proprietary may request rights to make such changes without landlord review, and to keep certain plans confidential.

Confidentiality protections can be offered allowing the landlord to review proposals only for safety and code compliance, with an undertaking not to disclose sensitive information except where operationally required.

LEED Compliance

Tenants pursuing LEED or green standards may insist on lease terms allowing relevant upgrades and modifications.

Landlords should review the request carefully, possibly consulting sustainability professionals. Provisions may be added to the lease if upgrades do not negatively impact overall building certifications or create burdens for shared systems.

Multiple Floors

Multi-floor tenants frequently seek the right to install internal stairs or run cabling between leased floors and building fire staircases.

Installation may be permitted following a review of structural, regulatory, and life-safety considerations. Landlords should require tenants to restore affected areas at lease end or surrender, and clarify obligations regarding cabling that continues to serve retained floors.

Risers And Other Passages

Tenants wish to secure unrestricted access to risers, shafts, and conduits necessary for their operations especially in telecom-rich offices.

Landlords should manage such spaces for the benefit of the building as a whole. Exclusive access may be granted where technically feasible, but shared infrastructure requires well-drafted use protocols, service rules, and coordination with regulatory obligations regarding telecom access.

Hoist

Some tenants require the right to install, use, and promptly remove an outside hoist or similar equipment.

Landlords may approve installation subject to inspection, insurance, and code compliance. Clear lease terms should require prompt removal either at lease end or earlier at landlord’s discretion and restoration of affected areas.

Limit Fees

Tenants often seek caps or clear schedules for fees associated with landlord approvals and consultant reviews.

Landlords should propose transparent, reasonable fee structures potentially waiving charges for routine submissions and reserving fees for complex or third-party-involved reviews. This fosters predictability and fairness.

Time To Remove Liens

Tenants completing substantial work want sufficient time to remove construction liens, considering legal processes and delays.

Landlords should be flexible if the tenant demonstrates active, diligent contesting or bonding of liens. Lease provisions should specify expected resolution timelines and excuses liability where the tenant acts in good faith.

Right To Finance Alterations

Tenants sometimes seek rights to leverage equipment or improvements for financing, requesting the landlord’s cooperation with lender requirements.

Landlords customarily refuse direct liens on the property but may contemplate subordinations or waivers to facilitate tenant financing. As an alternative, landlords could offer direct funding for approved alterations, with repayment built into rent or through separate agreements, subject to clear documentation and safeguards for the asset.

Conclusion

Navigating requests for these ease issues requires landlords to be pragmatic, responsive, and thorough. Thoughtful approaches with clear procedures, defined criteria, and balanced protections enable landlords to honor genuine tenant needs while upholding building value and operations. By translating negotiations into fair, workable lease language, landlords can establish productive relationships and minimize future disputes for both parties.