Negotiating Tips

Negotiating Tips

Use Center's Governing Document to Enforce Owner's Obligations

September 28, 2018    

In this issue of the Insider, we told you about how you can use your shopping center or office building’s governing document, called a reciprocal easement agreement (REA), to stop an owner from leasing space to tenants who disturb the tenant mix in a negative way. But the good...

Negotiate Rules for Space's Fixtures

June 28, 2018    

A tenant’s focus when negotiating a new lease is often on big ticket items that will be costly if they’re not hashed out in the lease. Tenant improvement allowances can reach into the hundreds of thousands of dollars for anchor stores or buildouts of large spaces, free rent can save...

Make Six Modifications to Owner's Rent Acceleration Clause

April 25, 2018    

Aside from termination rights, rent acceleration clauses are considered by tenants to be one of the harshest measures an owner has at its disposal as a remedy for nonpayment. This type of clause allows the owner to “accelerate” the rent due if you default. Essentially, a rent...

Limit Snowball Effect of Boosting Base Rent with Percentage Rent

October 31, 2017    

Owners of strip malls are always looking for ways to bring in more income. Unlike office building owners, they have the luxury of using methods other than base rent to make money. For example, percentage rent based on a tenant’s sales is a key method for collected more than base rent at...

Negotiate Parking Provisions to Get Enough Spaces for Customers and Employees

June 29, 2017    

Unless your business is located in an urban center near mass transportation, parking should be a major discussion during your lease negotiations. Without adequate parking at the property where you rent space, your store or office probably won’t survive. Many owners just designate an area...

Negotiate Relocation Rights for Temporary Office Move

May 31, 2017    

You might think of tenant relocations as applying mostly to retail spaces. And relocations within malls and shopping centers are common because of lease rights that include tenants choosing which other particular tenants or types of tenants they want to be adjacent to or nearby in a center. If...

Trade Extended Lease Term for Reduced Rent Rate

March 29, 2017    

Although the market has bounced back in many—especially urban—areas of the country, rental rates are still good or even relatively low in certain areas. If you have several years left on your lease and think that you’ll have to continue to pay a rental rate that could be better...

Push for Unusual Concessions During Negotiations

February 28, 2017    

Vacancy rates are still a struggle for shopping center and office building owners in some areas. Maybe the local economy isn’t robust and businesses aren’t interested in new office space, an owner’s projections for how much foot traffic a center will see were higher in theory...

Use Two-Part Strategy to Escape Changing Neighborhood

November 30, 2016    

Depending on a variety of factors, demographics in the area surrounding a commercial property can shift and the tone of the neighborhood could change with it. If you’ve planned to operate in a certain space partly because of its impressive location, this decline in or change of the tone of...

Negotiating HVAC Rights, Responsibilities

October 31, 2016    

While heating, ventilating, and air conditioning (HVAC) equipment used at office buildings and shopping centers is a basic day-to-day necessity for doing business, you shouldn’t take this issue for granted.

Don't Forget Basic Terms in Midst of Specialty Lease Negotiations

April 26, 2016    

Depending on the type of space you need and the nature of your business, your lease provisions could be somewhat complicated. Specialty leasing, like medical or dental practices taking space in shopping centers, is more popular than ever but creates additional considerations for both sides. And...

Add Three Key Requirements to Maintenance and Repair Clause

May 15, 2015    

The lease you are negotiating probably requires the owner to maintain and repair its building’s or center’s common areas and maybe your space, too. But don’t be surprised if the owner asks for an exemption—that is, a “carve-out”—from its repair duties if...