Feature

Get Self-Help Right if Owner Doesn’t Finish Work

April 22, 2013    

It’s common for owners to agree to make and pay for extensive improvements to entice tenants to rent a space. But tenants often run the risk that the work the owner has agreed to do won’t get done. And that can create costly problems for you and affect your operations. For...

Specify Owner Defaults, Your Remedies in Lease

March 27, 2013    

Tenants and owners typically negotiate lease responsibilities they think they can stick to. After all, violations of lease terms can be costly and, depending on what type of infraction is involved, time consuming as well. Despite an owner’s and a tenant’s best intentions, there...

Negotiate Fairer Version of Owner’s Rent Acceleration Clause

February 27, 2013    

Many owners will put a rent acceleration clause into their form leases. This clause—considered by tenants to be a harsh measure—lets the owner “accelerate” the rent due if a tenant defaults. Essentially, a rent acceleration clause in that situation will make the tenant...

Get Termination Option for "Key Player's" Death or Disability

January 29, 2013    

When negotiating leases tenants tend to focus on the issues that will affect them on a day-to-day basis or are likely to happen in the future. They often put an emphasis on tenant improvement allowances, common area maintenance costs, parking, or renewal or recapture rights. But don’t...

Set Operating Expense Cap Based on “Cost Disclosure Statement” from Owner

December 21, 2012    

If you sign a lease that requires you to pay a share of real estate taxes, operating expenses, or other costs, you could be in for a big shock if the numbers turn out to be much higher than the owner led you to expect. Higher than anticipated costs can hurt tenants’ businesses, especially...

Insist on Four Key Points When Negotiating CAM

November 26, 2012    

One of the most hotly debated issues during lease negotiations is which common area maintenance costs (CAM) and operating expenses will be charged to the tenant—and what portion of these CAM costs it’ll  be responsible for. To get a desirable space, you may have to agree to...

Set Limit on Management Fee Pass-Through

October 26, 2012    

Your office building or retail space’s owner, like many others, could try to collect its management costs by charging a management fee—that is, a fee that reimburses the owner for the costs it incurs from managing the property. The owner could’ve chosen to charge an...

How to Negotiate Adequate Casualty Provisions

September 20, 2012    

By Alan M. Cohen, Esq.

Address Eight Key Areas in Recapture Profit-Sharing Clause

August 15, 2012    

The opportunity to sublet or assign all or part of the office building or retail space you rent is crucial. It’ll give you the option of moving out of the space if you need to and halt paying rent during the length of the sublease or assignment—without breaching the lease. While you...

Modify Radius Clause to Protect Right to Expand Beyond Center

August 1, 2012    

Including a radius clause—that is, a clause barring you from opening another store within a certain distance, or radius, of your existing location—in a percentage rent retail lease is common. Owners typically include a radius clause in percentage rent leases so that you can’t...

Allow Four Carve-Outs in Exclusive Use Clause

July 3, 2012    

An exclusive use clause is a highly valuable clause in your lease because it will grant you the sole right to sell certain products or operate a certain type of business in the shopping center where you rent space. Because the right to an exclusive may be so beneficial for tenants, its scope is...

Reconcile CAM Charges with Lease Terms

May 28, 2012    

The common area maintenance (CAM) clause in your office building lease should set out which CAM costs you're responsible for paying. But because some CAM costs are variable, increasing or decreasing throughout your lease term, the owner of the building where you rent space should send you a...

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