Negotiating Tips

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...

Convince Owner to Trade Rent Relief for Certain Lease Rights

March 31, 2015    

Despite a steadily improving economy, some retailers—usually so-called mom-and-pop stores and new businesses—might still have to watch every dime. Some may even be struggling. If you’re paying more rent for your space than is feasible, but the location or other aspects of the...

Avoid Overpayments with Audit Right

August 25, 2014    

A typical owner won’t object if you ask for an audit right in your lease to avoid overpaying. After all, there is no justification for pushback other than wanting to cheat you. But while owners generally don’t refuse to give tenants an audit right in a lease, you will have to...

Protect Your Exclusive from 'Grandfathered' Tenants’ Use Changes

January 31, 2014    

Most shopping center leases in which the tenant has an exclusive, “grandfather”—that is, exclude—preexisting tenants from complying with it. If you’re prepared to agree with the owner that the exclusive that you’ve negotiated won’t apply to preexisting...

Lower Your Costs of Renting Commercial Space

November 26, 2013    

With the commercial real estate market improving in many areas, scouting out an affordable space to rent can be more challenging that it was during the recession. If you’re looking for space in an area where there are dwindling vacancies and owners don’t need to make many concessions...

Negotiating Blend-and-Extend Lease Amendments

September 27, 2010    

The weakened commercial real estate market has given new tenants the opportunity to negotiate their rent with owners that have been willing to budge on prices to fill space. But tenants with several years left on their leases can still take advantage of the low rental rates currently in...

Limit Owner's Right to Terminate Lease After Casualty

August 29, 2010    

If a fire, flood, hurricane, or tornado has damaged the shopping center or office building where you rent space, you may be worried about how you are going to continue operating your business until it has been repaired. But these damages can negatively affect your business over the long term if...

Renegotiating Rent Relief, Concessions

July 25, 2010    

If you're struggling financially, you may not be able to wait until the end of your lease term to renegotiate provisions. Instead, you might approach the owner during your current lease for rent relief or other concessions that will make it easier for you to stay in the space even though you...

Negotiate Eight Basic Lease Terms

June 20, 2010    

The downturn in the economy has given many tenants more leverage to negotiate lease terms that typically are in the owner's favor or not included in the lease at all. But while you are trying to take advantage of this, don't forget to negotiate basic terms that will help you live with...

Perform Due Diligence to Determine Best SNDA Protection

March 28, 2010    

In today's economy, there is a greater risk that commercial property owners will default on the loans for their shopping centers or office buildings. It is critical for tenants to make sure that they won't have to relocate if the owner's lender forecloses on the centers or buildings...

Get Cap on Operating Expenses, Make CPA "Condition Precedent"

December 28, 2009    

A retail or office tenant that is required to pay for all or a portion of the building's operating expenses should carefully examine the operating expense provision before signing its lease. If the provision in your lease provides that a determination as to what you owe for operating...

Recognize Value of Buildouts When Negotiating Lease Terms

September 27, 2009    

Tenants that are thinking about moving into a “plain vanilla box” office or retail space should be aware that making changes to the space to suit their specific needs could involve extensive negotiations with their owner. So don't treat the process of finishing your new space...