Feature

How to Amend Contractual Lien to Preserve Financing Opportunities

September 28, 2017    
First-time commercial real estate tenants—especially small ones or those who don’t have a proven record of success—might face an uphill battle before they can succeed. Financing and leasing issues are the most problematic. Seasoned landlords are aware that taking on smaller...
Q & A

Don't Rely on Owner's Summary of Exclusives at Center

September 28, 2017    
Q: I’m considering leasing space in a large shopping center where I suspect many tenants already have exclusive use clauses. I need some reliable way of determining whether those rights will affect my ability to sell certain products. The owner mentioned during negotiations that it would...
Plugging Loopholes

Remember Critical Points in Assignment Versus Sublet Provisions

September 28, 2017    
Assignment and subletting clauses are ubiquitous in retail leases. But don’t let the fact that you hear about them as a standard item let you forget exactly what they do. That’s crucial in negotiations—to understand what you need and ask for it; if you don’t understand the...
Tenant Wins

Landlord's Ownership Interest in Pylon Not Protected by Tenant's Lease

September 27, 2017    
Facts: A shopping center tenant affixed its name to a pylon sign on the property. The owner of the center disputed the tenant’s right to use the sign. The owner and tenant each asked a trial court for a judgment in its favor without a trial. Decision: A Massachusetts trial court ruled in...
Feature

Negotiate Provisions That Take Advantage of Center’s Redevelopment Plan

August 30, 2017    
The advantages of leasing in a strip mall or shopping center, rather than a stand-alone building, are numerous: good proprietary signage, a desirable tenant synergy, convenient parking, and visibility. And savvy tenants make sure that these benefits—which may be a large part of the reason...
Q & A

Avoiding Pitfalls of Lease Renegotiation

August 30, 2017    
Q: My business has been experiencing what I anticipate will be a temporary financial setback. I’m considering approaching the owner of the space I lease to ask for a renegotiation that would put things back on track. What are some possible ramifications and how can I avoid or minimize them?
Dos & Don'ts

Ask Owner for Space's Loss Factor Figure

August 30, 2017    
If the size of the space you’re considering leasing seems perfect, don’t overlook important issues like making sure that your business actually will physically fit the area. Just because a space is advertised as a certain number of square feet doesn’t mean that all of that square...
Dos & Don'ts

Don't Agree to Vague Automatic Renewal Clause

August 30, 2017    
If a right to renew your lease is very valuable to you, you might agree to an automatic renewal clause if that’s what the owner insists on. But if you don’t nail down the specifics of the automatic renewal’s terms it can work against you.
Dos & Don'ts

Ensure Owner Delivers on Incentives

August 30, 2017    
Guarantors who will back up the obligation of tenants who default on their leases are widely used for commercial real estate deals. But don’t forget that tenants aren’t the only parties that guaranties apply to. Getting a great deal on space is fantastic for tenants, but if you’re...
Tenant Wins

Tenant Not Bound by Covenant of Good Faith and Fair Dealing

August 30, 2017    
Facts: A shopping center owner decided to construct a new set of buildings within the shopping center grounds, which would house tenants that would be beneficial to its anchor store, a national clothing retailer. The retailer’s lease contains a clause that requires the owner to get the...