When leasing new spaces for your business, there can be a lot of jargon in the process that's difficult to understand. One phrase that often causes confusion is LOD, or Lease Outline Drawing. This document is an important part of the real estate and leasing process, so it's essential that you know what it is if you're at all involved in the property business.
Here's everything you need to know about a lease outline drawing, including what it is and why you need it:
What is a lease outline drawing (LOD)?
A Lease Outline Drawing (LOD) is an accurate drawing of the floor plan of a tenant-leased space or facility. It defines the limits of the leased premises and serves as the blueprint for the tenant to design their newly rented space. It's essential for completing your space planning, utilizing the space, and determining what kind of construction efforts are needed.
This drawing is prepared for the tenant so that they can have a better understanding of the space of their leased property and how it relates to any adjacent spaces. It's most often used to outline the proposed or certified square footage of leased commercial spaces.
It's important to know, however, that in many cases a lease outline drawing is only for general illustrative use. These illustrations generally do not show the exact leasing lines of a premise, or of surrounding locations, buildings, or common areas. These things will vary by lease, so it's important to keep that in mind when reviewing any LOD.
Why you need a lease outline drawing
An LOD is essential because it sets expectations for any leased property you may acquire. It outlines the differences between the actual space in terms of dimensions and allows you to take inventory of any physical assets you may be acquiring, such as furniture and cubicles.
These drawings also provide you with the assurance that your leased property is in compliance with any government regulations regarding space and access.
These lease drawings are great for people who struggle to understand spacing without some sort of visual representation of it. They're also helpful for people who are deciding between property options and need to be able to quickly differentiate between the physical assets each property affords them.
So while they may not be a necessity for the leasing process, they almost always make that process easier.
What to do before signing a commercial lease
After reviewing the lease drawing, you may think you have all the information to sign off. But there are some additional things you should consider before making things official. Here are some important things to do before signing:
- Read the lease thoroughly
- Educate yourself on any lease terminology you don't understand
- Ask the landlord for any lease changes you may need
- See if the lease is assignable
By taking these steps, you can ensure you're fully aware of the lease you're signing and that it's providing you with all the provisions you need for your business.
Final thoughts on the leasing process
The leasing process can be stressful, so why not make it as easy as possible? By obtaining a lease outline drawing, you can better navigate the leasing process, and end up with a commercial property that will set your business up for success.
Are you a business owner in need of property solutions? Need help assessing the merit of a potential real estate investment? Contact us to see how we can assist you!