Feature

Ensure Promised Pre-Lease Work Is Completed by Owner

June 28, 2018    
Most tenants, whether in an office building or retail space, need at least some improvements in order to make the space usable. So it’s common for owners to agree to make and pay for even extensive improvements, through a tenant improvement allowance (TIA), to entice tenants to sign a lease....
Negotiating Tips

Negotiate Rules for Space's Fixtures

June 28, 2018    
A tenant’s focus when negotiating a new lease is often on big ticket items that will be costly if they’re not hashed out in the lease. Tenant improvement allowances can reach into the hundreds of thousands of dollars for anchor stores or buildouts of large spaces, free rent can save...
Tenant Loses

Landlord Not Liable for Damage after Month-to-Month Tenancy Terminated

June 28, 2018    
Facts: A medical tenant clinic signed a lease that it renewed for an additional five-year term. During the initial and renewal term, the tenant paid monthly rent on time. After the renewal term was over, the tenant didn’t renew the lease formally; it continued to stay in the space and pay...
Q & A

Taking Important Factors into Consideration for Lease Renewal

June 28, 2018    
Q: My lease is almost up, and I’m on good terms with the owner of my retail space. I don’t want to assume that the renewal terms offered will be reasonable. How can I prepare for a situation where the owner might offer renewal terms that are worse than my original lease terms, but not...
Feature

Get Control in Work Letter to Avoid Hidden Costs

May 24, 2018    
If you’re negotiating a lease for space that will need construction work before you can occupy the space and do business there, you’ll face issues that are crucial for you to address. A major concern you should have is the “work letter,” which is typically an exhibit to the...
Drafting Tips

Extend Performance Time for Lease Obligations

May 24, 2018    
Like some often-overlooked provisions in commercial leases, a “force majeure” clause is a protection for tenants that ideally won’t be utilized. But, if you have to call on that clause, you’ll be happy if you spent the time and effort to negotiate and draft one that serves...
Q & A

Staying Within 'Prescription Period' to Sue for Co-Tenancy Violation

May 24, 2018    
  Q: Because I own multiple businesses, it’s easy to lose track of things like co-tenancy requirements. After the owner of the shopping center where I lease space for one of these businesses breached the lease by not replacing a tenant that went out of business with a suitable...
Feature

Avoid Common Pitfalls When Drafting Operating Expense Clause

April 25, 2018    
While there are many issues to be concerned with when signing a lease for commercial space, tenants often focus on what’s typically the most hotly contested provisions—exclusive use and cotenancy. The right to be the only tenant to sell a product in a center, or get the benefit of other...
Negotiating Tips

Make Six Modifications to Owner's Rent Acceleration Clause

April 25, 2018    
Aside from termination rights, rent acceleration clauses are considered by tenants to be one of the harshest measures an owner has at its disposal as a remedy for nonpayment. This type of clause allows the owner to “accelerate” the rent due if you default. Essentially, a rent...
Tenant Wins

Trial Necessary to Determine Whether Cotenancy Clause Constituted 'Liquidated Damages'

April 25, 2018    
Facts: A clothing retailer tenant signed a lease for space at a shopping center. The lease included cotenancy provisions that required the owner to lease space to three major tenants. If all three tenants were open and operating continuously, the retail tenant paid minimum rent. In the event that...