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...

Ensure Promised Pre-Lease Work Is Completed by Owner

June 28, 2018    

Most tenants, whether in an office building or retail space, need at least some improvements in order to make the space usable. So it’s common for owners to agree to make and pay for even extensive improvements, through a tenant improvement allowance (TIA), to entice tenants to sign a...

Get Control in Work Letter to Avoid Hidden Costs

May 24, 2018    

If you’re negotiating a lease for space that will need construction work before you can occupy the space and do business there, you’ll face issues that are crucial for you to address. A major concern you should have is the “work letter,” which is typically an exhibit to...

Avoid Common Pitfalls When Drafting Operating Expense Clause

April 25, 2018    

While there are many issues to be concerned with when signing a lease for commercial space, tenants often focus on what’s typically the most hotly contested provisions—exclusive use and cotenancy. The right to be the only tenant to sell a product in a center, or get the benefit of...

Take Two Steps to Push Owner into Returning Funds at Lease's End

March 29, 2018    

If you’re close to the end of your lease for space at an office building or shopping center, and you’ve had a good experience with the owner, you might not foresee any issues. Or maybe there have been various problems on either your or the owner’s side of the deal. But...

Include Four Points in Termination Option for Loss of 'Key Player'

February 28, 2018    

Sometimes, tenants get tunnel vision when negotiating leases; they tend to focus on certain issues, like those that will affect them on a day-to-day basis or are pretty likely to happen in the future. But don’t put an emphasis on just tenant improvement allowances, common area maintenance...

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...

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