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...
Dos & Don'ts

Avoid Persistent Audits of Kiosk Sales

August 28, 2018    
Shopping center or mall owners that grant licenses to kiosks and carts to conduct business there will want to audit the books and records of a set percentage of those kiosks and carts each year to verify their gross sales. It’s not uncommon for kiosks and carts to submit gross sales...
In the News

Lawsuit Will Determine Whether CRE Firm May Dictate Use of Union Contractors

August 28, 2018    
A new lawsuit raises the question of whether an office building tenant should get to choose whether to use union contractors for its space, or whether the decision should be left up to the building’s manager. The federal lawsuit filed against real estate giant Jones Lang LaSalle by a Chicago...
Tenant Loses

Method for Determining Renewal Rent Must Be Sufficiently Definite

August 28, 2018    
Facts: A tenant that operated a market and deli entered into a lease for retail space. The lease was for five years ending in May 2016. The rental rate for the initial term was $5,500 for the first two years, and $6,000 for the remaining three years of the lease. The lease contained a renewal...
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...