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...

Extend Performance Time for Lease Obligations

May 24, 2018    

Like some often-overlooked provisions in commercial leases, a “force majeure” clause is a protection for tenants that ideally won’t be utilized. But, if you have to call on that clause, you’ll be happy if you spent the time and effort to negotiate and draft one that...

Draft Detailed Default Clause to Protect Interests in Event of Owner's Lease Violation

March 29, 2018    

Conscientious shopping center and office building tenants should be aware of the responsibilities they agreed to in their leases and make every effort to stick to them. But don’t hyperfocus during negotiations on your end of the bargain; make sure that if the owner doesn’t also live...

Make Rent Rate Work for You Throughout the Year

July 31, 2017    

Tenants that make most of their profits during certain periods of time during the year can struggle in their off cycles, when their product or service is in less demand of not feasible for them to provide at all. For example, a store that really benefits from holiday sales, or seasonal...

Making Repair and Rent Provisions Dependent on Each Other

May 31, 2016    

At some point during your tenancy, your space could be damaged. Extreme weather has increasingly been destroying office buildings and shopping centers, and fires, plumbing issues, and vandalism are always risks that lurk in the background. So it’s crucial that you include a repair...

Define Protections in Specialty Insurance Coverage

April 17, 2015    

Damage that isn’t covered by a comprehensive insurance policy can tank a tenant’s business. You may think about insurance in the context of protecting potential losses after you move into a retail or office space. But if typical, general insurance isn’t enough for you, there is...

Set High 'Soft Cost' Limits in TIA Clause

July 31, 2014    

During lease negotiations you and the owner of the space you’re considering renting will probably discuss a tenant improvement allowance (TIA) that will help you pay for the cost of altering your new office building or shopping center space. This discussion is important. After all, a...

Link Late Fees to Direct Deposit of Rent Payments

May 28, 2012    

Despite the growing popularity—and convenience—of using direct deposit or wire transfer (that is, depositing funds directly into another bank account), your owner could refuse to give you the right to pay your rent this way. Instead, it could require you to pay your rent with a...

Don't Let Owner Set Low Cap on Refurbishment Allowance

October 30, 2011    

If you're only halfway through your office lease term but your space is looking shabby, you may feel that the rent you'll be paying during the last few years of the lease will be higher than the outdated space will be worth at that point. For example, the rent at year seven of your 10-...

Get Other Tenants' Exclusive Use Clauses Before Drafting Your Own

July 31, 2011    

When you're negotiating a shopping center lease, you'll want to know about the exclusives that other tenants in the center have that you'll have to honor. But don't rely on just a summary from the owner—it could make a mistake by leaving out an exclusive or misstating the...

Renegotiating Stronger Lease Terms

February 11, 2011    

As a retail tenant, you know that typical commercial leases are long term—anywhere from five to as many as 25 or more years, often with options to renew for longer periods of time. If you had just started your business or were struggling when you signed the lease for your current space,...

Negotiating HVAC Rights, Responsibilities

October 31, 2010    

The heating, ventilating, and air conditioning (HVAC) equipment used at office buildings and shopping centers is very expensive. Many tenants worry that, if there are no provisions in their lease specifying which of the potential HVAC issues related to their space owners are responsible for...

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