Plugging Loopholes

Include Three Requirements When Negotiating Lease’s Exclusive Use

January 31, 2017    

Typically, when a retail or restaurant tenant looks at prospective space in a shopping center, it wants to know about the other tenants. After all, synergy—the way that tenants’ uses work together to be beneficial for all of them—and competition are keys to success in that...

Ensure Right to Expand Use of Space

December 22, 2016    

Tenant synergy—that is, stores functioning together to draw shoppers that a center normally wouldn’t capture without them as a group—can make or break a tenant’s and a center’s profitability. That’s why savvy owners devise a strategy to have each tenant commit...

Use Permitted Use Clause to Keep Marijuana Dispensary Out of Property

September 30, 2016    

The “permitted use” provisions for shopping center tenants are a key part of commercial leases and can be heavily negotiated. Savvy tenants spend time negotiating a cotenancy clause that specifies which businesses must be part of the makeup of the center and carving out remedies for...

Modify Overlooked Assignment Provisions

August 22, 2016    

There are many issues to take into consideration when negotiating and drafting the assignment and subletting provisions in your lease. After all, assignments and sublets can be a key part of an exit strategy that you might need later. Being able to assign your lease or sublet your space is...

Carve Out Right to Guaranty Return

July 29, 2016    

In some cases, the owner of space you rent will require a lease guaranty. If you can find one or more guarantors who agree to fulfill your lease obligations and cure your lease defaults if you don’t, you can rent the space. A guaranty can be a way for an owner to test out whether you...

Eliminate Obligation to Repair Common Elements

May 15, 2015    

You might assume that if your employee has an accident in the building or shopping center where you rent space, the owner of the property would be liable. You might reason that you shouldn’t be on the hook for lawsuits arising out of the owner’s failure to keep the building safe for...

Protect Against Paying Unrelated Taxes

April 25, 2014    

The CAM cost clauses of most leases require tenants to pay a pro rata share of any taxes on the building or center. Paying your share of these taxes is fair because you receive a benefit from them. But you should watch out for an owner that tries to pass on taxes that are unrelated to the...

Set Up Three-Part Special Enforcement Remedy

February 28, 2014    

Retail tenants, and especially those new to leasing space, may not be aware of what a shopping center’s governing document is—or the impact it can have. A shopping center’s governing document—such as a reciprocal easement agreement (REA)—may include maintenance...

Limit Owner's Right to Erect Scaffolding

October 31, 2013    

At some point, the owner of your shopping center may need to erect scaffolding to repair, clean, or renovate its façade. Although updates to a center that make it look like an inviting, first-class property can boost foot traffic, there is a downside. Scaffolding left in place for a long time...

Avoid Paying for Space You Can’t Use

May 30, 2013    

It’s common for commercial leases to contain standard so-called “boilerplate” clauses. But it’s crucial that you check with your attorney before signing off on terms, no matter how commonplace, that might seem harmless now, but could certainly come back to bite you later...

Limit Owner's Alterations Right

March 27, 2013    

Most leases give the owner broad rights to alter or rearrange the building’s or center’s common areas, including entrances, passageways, corridors, doorways, stairs, elevators, and other public parts of the building or center. But while making such alterations, the owner may decide...

Require Written Notice that Space Is Restored

January 29, 2013    

 

Recent weather-related disasters and storm damage across the country have shut down many office buildings and shopping centers temporarily—and some permanently. As a result, commercial tenants and owners are even more focused on the importance of lease terms that divvy up...

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