Commercial Tenant's Lease Insider

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Carve Out Rights in Comprehensive Memorandum of Lease

October 31, 2018    
If the owner of the shopping center or office building where you lease space has financial difficulties, it may be dealing with one, or even several, liens filed against the property. If you don’t have priority if the owner becomes bankrupt, you could be dramatically affected, up to and...
Negotiating Tips

Negotiate Four Key Management Fee Pass-Through Issues

October 31, 2018    
Management costs for a commercial real estate property can be onerous for landlords. So your office building or retail space’s landlord, like many others, could try to collect its management costs by charging a management fee—that is, a fee that reimburses the owner for the costs it...
Tenant Loses

Lease Agreement Foreclosed Tenant's Ability to Collect Condemnation Award

October 31, 2018    
Facts: A large national retailer leased space in a shopping center that later had a major access point blocked by the state’s department of transportation as part of a “condemnation.” The landlord and tenant each asked the state for a “condemnation award.” The lease...
Feature

Fight Owner's Attempt to Change Nature of Tenants

September 28, 2018    
Tenant mix is a key component of a shopping center or mall tenant’s strategy for financial success. This mix, also known as synergy, boosts foot traffic, increases the likelihood that customers will stay longer, and can make the property into a “destination” center. The types of...
Negotiating Tips

Use Center's Governing Document to Enforce Owner's Obligations

September 28, 2018    
In this issue of the Insider, we told you about how you can use your shopping center or office building’s governing document, called a reciprocal easement agreement (REA), to stop an owner from leasing space to tenants who disturb the tenant mix in a negative way. But the good news about an...
Q & A

Keeping Excess Rent from Sublet of Space That Breached Lease

September 28, 2018    
Q: I signed a lease with the owner of a storage space facility, but I no longer need that space because the owner of the shopping center where I run my business has offered to allow me to keep inventory there. I don’t want to incur costs from trying to get out of the lease for the facility...
Tenant Loses

Landlord's Promise to "Work on" Renewal Wasn’t Fraudulent Inducement

September 28, 2018    
Facts: A tenant rented space to operate its nail salon under a lease that was assigned to it by the original tenant. The lease provided for two additional five-year terms. In order to exercise a renewal option, the tenant had to give written notice 120 days prior to the end of the term stating that...
Feature

What to Consider Before Signing Lease for Retail Space in Airport

August 28, 2018    
Leasing nontraditional space can work out better for some tenants than traditional space would. Multiple types of nontraditional space have popped up and become available over the past few years. Airports are no exception, with travelers—who are a captive audience—buying more than just...
Drafting Tips

Draft Airtight Termination Clause

August 28, 2018    
Owners of office building and retail space typically are very reticent to give a termination right to tenants in their leases. Owners run the risk of losing a large amount of money; allowing a tenant to get out of its lease early can render costly improvements and other expensive items associated...
Dos & Don'ts

Get Right to Use Space for Non-Sales Purposes

August 28, 2018    
So much retail business is done online that it’s common for tenants that are pulling in profits that way to use their brick-and-mortar spaces for purposes related to the business, but not to actually sell products. For example, depending on your business, if you have a successful website you...