Feature

Push for Concessions that Compensate for High Rental Rate

January 31, 2018    

While the rental rate for retail or office building space seems cut and dried, many factors go into the ultimate amount you’ll end up paying. Any rent abatement, free rent negotiated, or other concessions will bring down rent figures. But so-called “face rates” can be a driving...

Negotiate Tenant-Favorable Holdover Clause with Owner

December 22, 2017    

The point of agreeing on a lease term—which specifies the dates on which the tenant may move in and by which the tenant must move out of the space—is to provide both sides with advanced notice so they can make decisions that can have serious financial consequences. When the lease...

Protect Your Interest in Opening New Store Locations

November 30, 2017    

It’s common for retail tenants to agree to a percentage rent arrangement in their lease with the owner of a shopping center or strip mall. That is, the owner will reap a predetermined percentage of certain profits made by the tenant, in addition to base rent. Owners are fiercely protective...

Cover Five Key Issues When Negotiating Refurbishment Allowance

October 31, 2017    

At some point every office building or shopping center—even new and top-of-the-line properties—becomes dated. An owner might update common areas or freshen the exterior of the property, but your space will be your responsibility to keep up to your standards. You might’ve...

How to Amend Contractual Lien to Preserve Financing Opportunities

September 28, 2017    

First-time commercial real estate tenants—especially small ones or those who don’t have a proven record of success—might face an uphill battle before they can succeed. Financing and leasing issues are the most problematic. Seasoned landlords are aware that taking on smaller...

Negotiate Provisions That Take Advantage of Center’s Redevelopment Plan

August 30, 2017    

The advantages of leasing in a strip mall or shopping center, rather than a stand-alone building, are numerous: good proprietary signage, a desirable tenant synergy, convenient parking, and visibility. And savvy tenants make sure that these benefits—which may be a large part of the reason...

Get 'Springing' Exclusive if You Lease Space in Exclusive-Free Center

July 31, 2017    

Exclusive use is not just a way to guarantee success for some tenants who want a monopoly so to speak on selling certain goods or services. It’s also a hotly negotiated lease right. Because it’s on the radar for most tenants during negotiations, you might expect that all centers have...

Draft Nuisance Provisions that Prevent Landlord from Limiting Your Operations

June 29, 2017    

The point of negotiating a lease that’s favorable to you is to ensure that the terms you’re required to operate under allow you to use your space in a way that’s beneficial for your business. But if your business generates noise, plays loud music, attracts customer lines or...

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...

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...

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...

Demand That Owner Include Environmental Warranty in Your Lease

February 28, 2017    

Relying on oral assurances from the owner of your prospective commercial real estate space is risky. The consequences can range from you being aggravated—for example, if an adjacent tenant that was portrayed during negotiations as being quiet ends up compromising your right to quiet...

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