Sublease Agreement and Improvement Costs
A friend has a machine shop. He agreed to sublease a unit in an industrial building for one year beginning Feb. 1st, 02. When he looked at the unit prior to renting it, he asked the lessor if the unit had 3 phase power. The lessor said he’d ask the building’s owner and get back to him. He later told my friend the unit did have 3 phase power.
My friend just found out the unit has single phase power. He had a couple of big machines moved into the unit and during the move a neighbor (an electrician) looked at the power box and noticed it was single phase.
My question is how does he work out who pays for power to be brought into the unit? My friend would not have taken the unit if he was told it was single phase. The sublease agreement is for a machine shop but my friend cannot run any of his machines with single phase. The land owner told my friend’s lessor that he’d pay for 1/2 the cost to make the unit 3 phase. Should my friend have his lessor pay the other 1/2? The sublease agreement is for a year and the lessor may take the unit back at the end of the term. My friend doesn’t want to spend a lot on a 10 month use period. What would be the best arrangement in this situation?
Thank you in advance.