A commercial property manager in Winnipeg, Manitoba, is negotiating a new lease with an international company, 'Global Connect Inc.'. Global Connect requires significant modifications to the leased space, including structural changes and specialized wiring. What is the property manager's most critical communication task related to these modifications?

Question: A commercial property manager in Winnipeg, Manitoba, is negotiating a new lease with an international company, 'Global Connect Inc.'. Global Connect requires significant modifications to the leased space, including structural changes and specialized wiring. What is the property manager's most critical communication task related to these modifications?

Answer options: ✅ Clearly document all tenant improvements (TIs) and modifications in the lease agreement, specifying who is responsible for design, approval (including permits), cost, and restoration.

• Advise Global Connect Inc. that all modifications are at their own expense and risk.
• Inform the tenant that they must obtain all necessary permits themselves.
• Approve the modifications verbally to expedite the lease signing process.

Correct answer: Clearly document all tenant improvements (TIs) and modifications in the lease agreement, specifying who is responsible for design, approval (including permits), cost, and restoration.

Explanation: For significant commercial tenant improvements, detailed documentation within the lease is crucial. This clarity avoids future disputes regarding financial responsibility, compliance with building codes and municipal bylaws, and the condition of the premises upon lease expiry. This is a best practice in commercial leasing.