In our Winter 2013 newsletter, we reported the USPS had agreed to new wording of its termination clause, effectively making the shortest termination clause 30 months; however, that is no longer the case.
It’s true the Postal Service is mandating all leases must include a termination clause, but may ask for a much shorter period than the 30 months.
Accepting a shorter term may have a negative impact on the value of your leased post office by decreasing market value and making it difficult to sell or to finance improvements or repairs. Lessors should determine the financial effects of such a clause and know what they are willing to accept. So be sure to negotiate the guaranteed occupancy period to be as long as possible. Many lessors have successfully received a longer period than initially proposed by the CBRE broker.