In a Law360.com article published on August 18th titled "4 Tips For Advising Tech Companies On Real Estate Deals," Simon Adams of the San Francisco office of Reed Smith offered his thoughts on the property challenges facing technology firms.
Andrew McIntyre of Law360 identifies the following tips:
Need for expansion drives many deals
Simon states that "during negotiations for technology clients I strive to understand with the client team how the current proposed use of any facility intended for the immediate business unit may change over the course of time." "In a large lease of space, a technology company may not have bargained at the outset for the ability to contract or expand and yet may be willing to seek such terms and incur agreed-upon fees related to these option rights."
Connectivity is Key
Privacy is Paramount
Government Restrictions May Be In Play
Some tech companies with government contracts must deal with protocols that affect their landlords and properties. "I have dealt with clients where the lead time to move a business unit between locations can exceed two years due to a government agency requirement to audit replacement space before it may be cleared for operations," Simon Adams says. "In this instance, remaining on program is critical, and if that program calls for a contract to be in place by a certain date, then it can be essential for the legal team to staff accordingly to meet their milestone."
The full text of the article can be found here.
This article is presented for informational purposes only and is not intended to constitute legal advice.
