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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...
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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...
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...
Tenant Wins

Landlord's Board Testimony Regarding Damages Was Improper

March 29, 2018    
Facts: A dry cleaning business subleased space in a shopping center. The business owner was also the guarantor on the sublease. The subtenant prematurely vacated the space. The landlord sued the subtenant. A trial court ruled in favor of the landlord, awarding it $343,000 in damages. The damages...
Feature

Include Four Points in Termination Option for Loss of 'Key Player'

February 28, 2018    
Sometimes, tenants get tunnel vision when negotiating leases; they tend to focus on certain issues, like those that will affect them on a day-to-day basis or are pretty likely to happen in the future. But don’t put an emphasis on just tenant improvement allowances, common area maintenance...
Traps to Avoid

Follow Four Steps When Asking Owner to Make Repairs

February 28, 2018    
Unfortunately, the owner of the space you lease might not respond promptly to a problem in your space that needs repair. That’s a serious issues because it could get worse—possibly disrupting your business and damaging your property. So what can you do if you’ve reported that...