Feature

Negotiate Protections to Minimize Guarantor’s Liability for Lease

January 29, 2019    
Using a guarantor to secure your lease obligations—if you aren’t as financially strong or experienced as the owner for the space you want to lease would like—can be the difference between doing business in a desirable location or having to set up shop elsewhere. But while the...
Q & A

Negotiating Right to Challenge Operating Expense Determination

January 29, 2019    
Q: I’m in negotiations with the owner of retail space I’ll be leasing. The operating expense provision is being heavily negotiated, mainly regarding specific items that I’ll be required to pay and those that will fall on the owner. Aside from actual costs, what else should I look...
Traps to Avoid

Delay Impact of Surprise Expenses

January 29, 2019    
Even if you do your best to plan expenses for your business when it comes to the space you rent, a new operating expense or a significant increase in a current operating expense might arise after you sign a lease, or after the base year, if you sign a base year lease. It could be an increase that...
Tenant Wins

Landlord's Insurer Can't Seek Subrogation from Tenant

January 29, 2019    
Facts:A landlord and a tenant signed a lease that provided that the landlord would insure the building and the tenant would insure its personal property inside the building. When the property was later damaged by a fire, the landlord’s insurance covered the loss. The landlord’s insurer...
Feature

Perform Due Diligence to Avoid Additional Rent Surprise

December 18, 2018    
Making a profit from running your business at a mall or shopping center is the ultimate goal, and to further that, you might be lured by reasonable, or even low, base rent. But an affordable base rent figure is only as good as the total when you add incidental costs—which can be so high that...
Tenant Wins

Tenant's Yellowstone Injunction Appropriate Pending Outcome of Late Rent Claims

December 18, 2018    
Facts: A tenant rented space for its office on two floors of a building. When it attempted to exercise its option to renew its lease for an additional five-year term, the landlord offered to buy out the lease, but the tenant rejected the offer. A few weeks later, the tenant received a termination...
Tenant Wins

Landlord Must Pay for Tenant's Improvements Without Giving Express Consent

December 18, 2018    
Facts: A landlord leased so-called vanilla box space to a café tenant. The tenant was required to perform electrical work before it could open. Its contractor, an electrician, completed the work, and the landlord was informed that it had been done so the café could open. The tenant went out of...
In the News

Dispensary Tenants Can Have High Hopes for CRE Representation

December 18, 2018    
There’s good news for the growing number of marijuana dispensary tenants: A new survey of commercial real estate brokers who have done lease deals for space for these businesses reveals that—despite the difficulty of negotiating such leases—they would try again. So tenants won...
Feature

Negotiate Four Limits and Conditions in Owner's Recapture Clause

November 21, 2018    
Getting the right to “go dark”—that is, stop operating while continuing to pay rent—if your business isn’t generating enough revenue, is very valuable. That’s because going dark can save you the cost of stocking and staffing the space you rent, among other...
Q & A

Missing Deadline to Exercise Option Due to Employee's Error

November 21, 2018    
Q: The lease I negotiated with the owner of the space I rent has an option to purchase, so that I can buy the property after a certain number of years as a tenant. The notice requirements for exercising the options are very clear; however, as I’m expanding my business, I’ll probably...