Feature

Carve Out Right of First Refusal, Right of First Offer to Get Space You Need

July 31, 2018    
The economic downturn several years ago changed the commercial real estate market in many ways, most notably, in tenants’ need for space. Some tenants turned to trying to profit from online sales, which saved money on rent for physical space. Office tenants also tried to shore up losses by...
Drafting Tips

Protect Interests When Subletting with Broadly Defined ‘Costs’

July 31, 2018    
Subletting can be a useful solution for tenants that are trying to cut costs and don’t need all of the space they’ve leased. A considerable amount of available commercial space is sublet, particularly in office buildings. And tenants that sublet their space may recoup a profit, in...
Q & A

Negotiating 'Partial Invalidity' Clause for Changed Circumstances

July 31, 2018    
Q: I’m considering leasing space on the first floor of a mixed-use building that includes residential units. I’m concerned that if zoning laws change, I won’t be able to operate my business, but will still be on the hook for a multi-year lease. What do owners typically use to...
Tenant Loses

Lease Required Tenant to Make Interior Repairs

July 31, 2018    
Facts: A bank leased space for its branch in a retail center. Over the course of several years, the tenant experienced sewer backups and other plumbing problems. It repaired these problems without giving notice to the landlord. After the tenant suspected that water damage had led to mold in the...
In the News

Dark Retail Space Showing Signs of Life

July 31, 2018    
Feature

Ensure Promised Pre-Lease Work Is Completed by Owner

June 28, 2018    
Most tenants, whether in an office building or retail space, need at least some improvements in order to make the space usable. So it’s common for owners to agree to make and pay for even extensive improvements, through a tenant improvement allowance (TIA), to entice tenants to sign a lease....
Negotiating Tips

Negotiate Rules for Space's Fixtures

June 28, 2018    
A tenant’s focus when negotiating a new lease is often on big ticket items that will be costly if they’re not hashed out in the lease. Tenant improvement allowances can reach into the hundreds of thousands of dollars for anchor stores or buildouts of large spaces, free rent can save...
Tenant Loses

Landlord Not Liable for Damage after Month-to-Month Tenancy Terminated

June 28, 2018    
Facts: A medical tenant clinic signed a lease that it renewed for an additional five-year term. During the initial and renewal term, the tenant paid monthly rent on time. After the renewal term was over, the tenant didn’t renew the lease formally; it continued to stay in the space and pay...
Q & A

Taking Important Factors into Consideration for Lease Renewal

June 28, 2018    
Q: My lease is almost up, and I’m on good terms with the owner of my retail space. I don’t want to assume that the renewal terms offered will be reasonable. How can I prepare for a situation where the owner might offer renewal terms that are worse than my original lease terms, but not...
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...