Feature

Push for Concessions that Compensate for High Rental Rate

January 31, 2018    
While the rental rate for retail or office building space seems cut and dried, many factors go into the ultimate amount you’ll end up paying. Any rent abatement, free rent negotiated, or other concessions will bring down rent figures. But so-called “face rates” can be a driving...
Plugging Loopholes

Get Incremental Access to Cash Tied Up in Significant Security Deposit

January 31, 2018    
Tenant defaults sometimes happen, and experienced owners of office buildings or shopping centers know this and ask for a sizeable security deposit from some tenants who seem at higher risk. If this would leave you with less cash flow than you anticipated, you may be able to get your security...
Q & A

Taking Two Steps to Find Solid Retail Space

January 31, 2018    
Q: As a first-time business owner, I’ll be looking for retail space in a shopping center. What should I be aware of when visiting properties and before signing a lease? A: Conducting proper due diligence before signing a lease is crucial. Rental rates and the length of a lease term are top...
Tenant Wins

Trial Required to Determine Whether Owner Took Control of Premises

January 31, 2018    
Facts: An owner and tenant signed a lease for a four-story parking garage with two retail spaces below it. The owner served the tenant with a written notice to cure 21 lease violations primarily related to the physical deterioration of the building caused by the tenant. In response, the tenant...
Feature

Negotiate Tenant-Favorable Holdover Clause with Owner

December 22, 2017    
The point of agreeing on a lease term—which specifies the dates on which the tenant may move in and by which the tenant must move out of the space—is to provide both sides with advanced notice so they can make decisions that can have serious financial consequences. When the lease term...
Tenant Wins

Owner Is Responsible for Common Area Maintenance

December 22, 2017    
Facts: The owner of a movie theater signed a lease for space at a mall. Over a period of time, maintenance issues, like timely garbage removal, became apparent. The tenant asked the owner to take care of maintenance and upkeep, asserting that the lease and common area maintenance (CAM) agreement...
In the News

European Mall Operator Banks on Luxury Mall Success in U.S.

December 22, 2017    
The typical American shopping mall landscape has changed drastically—and for the worse—in recent years, in large part because nearly every item sold from a traditional brick-and-mortar store can be purchased online. Consumers who would rather devote time to things other than driving to...
Feature

Protect Your Interest in Opening New Store Locations

November 30, 2017    
It’s common for retail tenants to agree to a percentage rent arrangement in their lease with the owner of a shopping center or strip mall. That is, the owner will reap a predetermined percentage of certain profits made by the tenant, in addition to base rent. Owners are fiercely protective of...
Tenant Wins

Trial Needed to Determine Whether Site Plan Change Was Permissible

November 30, 2017    
Facts: The lease between a multiple-phase shopping center owner and national tenant indicated that the tenant would occupy a space in building A of phase one in the not-yet-constructed property. The lease contained certain provisions concerning the construction process and the future tenants of the...
Tenant Loses

Tenant's Breach of Lease Couldn't Be Cured

November 30, 2017    
Facts: A nonprofit art corporation leased space from the owner of a building that was connected with another property. The owner agreed that the tenant could make improvements after getting written consent. After the tenant had altered the structure of the building’s basement, the owner...