Another recent trend of the current commercial real estate market that we’ve seen is the extension of notice periods beyond a customary thirty (30) day threshold.
Notice periods are a commonplace provision in many leases and license agreements. Historically, notice provisions have been a formality, providing a standard protocol for terminating such agreements.
However, in many license agreements with month-to-month shared-offices providers and/or limited personal “good guy” guarantees (FMI - What is a “good guy” guarantee? http://www.officeleasecenter.com/articles/q-what-is-a-good-guy-guarantee.html) we have seen notice provisions move towards the 60-90 day window.
Conveniently (for the landlord), a longer notice period pushes the noticer into subsquent rental payment period(s).
As with many lease clauses, these notice periods are easily negotiated down, however, it is imperative that one “notice” the specific language in the contract documentation.