Feature

Keep Recapture Option Flexible for Future Needs

May 31, 2017    
Many leases will provide that if a tenant wants to assign the lease or sublease all or any portion of the space it leases, the owner will have the right to recapture—that is, take back—the space. In the context of an assignment, by which the tenant transfers to an assignee all of its...
Negotiating Tips

Negotiate Relocation Rights for Temporary Office Move

May 31, 2017    
You might think of tenant relocations as applying mostly to retail spaces. And relocations within malls and shopping centers are common because of lease rights that include tenants choosing which other particular tenants or types of tenants they want to be adjacent to or nearby in a center. If one...
Q & A

Drafting Limits on Guaranty in Lease

May 31, 2017    
Q: The owner of the space I’m considering leasing wants me to provide a guaranty. I’ve found a guarantor, but I want to avoid giving the owner unfettered power and make sure the guarantor is protected. Otherwise, what incentive does it have to stand in for me? What are some common...
In the News

Economists: CRE Industry Stays Steady through 2019

May 31, 2017    
A new three-year economic forecast from the Urban Land Institute (ULI) Center for Capital Markets and Real Estate predicts that the U.S. economy and commercial real estate industry are, in general, expected to experience moderate growth through much of 2019. The ULI Real Estate Consensus Forecast,...
Feature

Negotiate Four Key Items in CAM Reconciliation Clause

April 19, 2017    
If your lease requires you to pay annual common area maintenance (CAM) costs or operating expenses based on estimates that the owner calculates at the beginning of the year, you should be aware that, although this seems like a simple process in theory, in practice there are many pitfalls for...
Traps to Avoid

Make Sure You Aren’t Converting Utilities in Violation of Lease

April 19, 2017    
If you are the assignee on a lease, you might move into the space thinking that everything is status quo and that the assignor was complying with the lease provisions. But it’s important to do your own due diligence, as much as possible, to determine whether there are violations that would...
Q & A

Meeting Requirements to Bring Claim to Trial

April 19, 2017    
Q: A provision in my lease for space in a retail center specifies that I must fix any damage to the elevator that I use as part of my business. The owner recently discovered that the equipment has been damaged, and it sent me a notice to cure. However, I think the damage occurred before I moved...
Tenant Loses

Tenant's Inconvenience Didn't Override Owner's Decision to Terminate

April 19, 2017    
Facts: A tenant leased space in a shopping center for its restaurant. The tenant had an option to renew its lease, but had to exercise that option a year before the lease term was to expire. The tenant claimed that it sent a letter to the owner of its space, letting it know that it would renew its...
Feature

Sublet to 'Approved Franchisee' Without Consent

March 29, 2017    
Both commercial real estate owners and tenants that are franchisees have control issues that come to the forefront when negotiating leases. Owners—especially those of retail centers—are under pressure to keep a winning synergy of tenants going while also honoring exclusive use and...
Negotiating Tips

Trade Extended Lease Term for Reduced Rent Rate

March 29, 2017    
Although the market has bounced back in many—especially urban—areas of the country, rental rates are still good or even relatively low in certain areas. If you have several years left on your lease and think that you’ll have to continue to pay a rental rate that could be better at...