Dos & Don'ts

Decode Lease Labels for Yourself

May 30, 2014    

If you’re negotiating a lease, don’t rely on lease labels—such as “gross lease,” “net lease,” “double net lease,” “triple net lease,” “modified gross lease,” and “modified net lease”—to figure out...

Encourage Interior Landscaping in Center

May 30, 2014    

No matter how well-planned your store’s appearance is, foot traffic will dwindle if the overall center isn’t aesthetically welcoming. Most shopping center owners and managers know the value of landscaping outside of their centers. But many don’t know that landscaping the...

Don't Subsidize Money-Making Business for Owner

April 25, 2014    

If the building where you lease or are considering leasing space has its own parking facility, more than likely the owner is charging a fee and making money from the operation. But regardless of how profitable the facility is, the owner may still try to pass through to you all of the costs to...

Put Lease Term Length at Top of Negotiations

April 25, 2014    

If you are a small tenant with a new business, the length of the lease term should be at the top of your list of issues to negotiate. Especially when seeking space within a large office building or shopping center, small tenants are forced to choose carefully which issues to negotiate. If you...

Check Lease Before Putting Up Holiday Season Displays

November 26, 2013    

Before putting up a holiday display, check the signage provisions in your lease to see whether they bar you from putting up any kind of sign or display without the owner’s “prior written consent.” Typically, shopping center owners want to get control over all signs and displays...

Don't Act Too Quickly After Notice to Cure

November 26, 2013    

You’ll want to act quickly when the owner sends you a notice to cure, so that your lease doesn’t get terminated. But the notice, which informs you of the alleged lease violation and gives you an opportunity to fix it, might not be accurate. And if the notice contains inaccuracies,...

Don’t Ignore Eminent Domain Risk

October 30, 2013    

Eminent domain, sometimes referred to as “condemnation” or a “taking,” is the federal, local, and state government’s ability to take, for fair compensation, private property and utilize it for a public purpose. It’s not common, especially when the property...

Consult Risk Managers Before Signing Lease

October 30, 2013    

Make sure that you consult insurance experts—such as your in-house risk manager, outside insurance broker, and/or insurance attorney—before signing your lease. These experts should review your insurance documents, the lease’s insurance provisions, and any areas where the...

Get New Consideration for Guaranty Signed After Lease

October 30, 2013    

If you’re a strong tenant, you may demand a guaranty from an owner to cover the cost of lease inducements—especially if the owner is financially shaky. If you demand such a guaranty after you and the owner have signed the lease, make sure the guaranty has new “consideration...

Include Essential Lease Terms

September 27, 2013    

Thanks to the downturn in the economy, many tenants have more leverage to negotiate lease terms that typically are in the owner’s favor or not included in the lease at all. While you’re trying to take advantage of this, don’t forget to negotiate basic terms that will help you...

Address Needs of Disabled in Evacuation Plan

June 28, 2013    

Make sure the emergency evacuation plan for your leased space addresses the needs of disabled individuals, including disabled employees and visitors. If it doesn’t, these individuals may find it difficult, if not impossible, to evacuate your space in an emergency. For example, if your...

Verify Property's Ownership Before Agreeing to Purchase Option

June 28, 2013    

Before you sign a lease that gives you an option to purchase the office building or shopping center where the space is located, verify the ownership of the building or center by running a title search. And make sure that the party signing the lease is the actual owner of the property. If the...