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...
Feature

Take Two Steps to Push Owner into Returning Funds at Lease's End

March 29, 2018    
If you’re close to the end of your lease for space at an office building or shopping center, and you’ve had a good experience with the owner, you might not foresee any issues. Or maybe there have been various problems on either your or the owner’s side of the deal. But regardless...
Drafting Tips

Draft Detailed Default Clause to Protect Interests in Event of Owner's Lease Violation

March 29, 2018    
Conscientious shopping center and office building tenants should be aware of the responsibilities they agreed to in their leases and make every effort to stick to them. But don’t hyperfocus during negotiations on your end of the bargain; make sure that if the owner doesn’t also live up...
Q & A

Determining Likelihood of Injunction After Exclusive Waiver Is Declined

March 29, 2018    
Q: I signed a lease for space at a shopping center for my business, which sells a variety of entertainment products. At the time I signed the lease, my business didn’t carry toys. Because variety stores typically do sell toys, the landlord made me aware of the exclusive use clause in its...
Tenant Loses

Landlord's Unlawful Detainer Action Didn’t Bar Subsequent Lawsuit

March 29, 2018    
Facts: After a retail tenant stopped paying rent, the owner of the center asked a trial court for an “unlawful detainer” so that it could physically evict the tenant. An unlawful detainer action is a summary proceeding designed to adjudicate the right of immediate possession; the only...