Feature

Negotiate Four Key Items in CAM Reconciliation Clause

April 19, 2017    
If your lease requires you to pay annual common area maintenance (CAM) costs or operating expenses based on estimates that the owner calculates at the beginning of the year, you should be aware that, although this seems like a simple process in theory, in practice there are many pitfalls for...
Traps to Avoid

Make Sure You Aren’t Converting Utilities in Violation of Lease

April 19, 2017    
If you are the assignee on a lease, you might move into the space thinking that everything is status quo and that the assignor was complying with the lease provisions. But it’s important to do your own due diligence, as much as possible, to determine whether there are violations that would...
Q & A

Meeting Requirements to Bring Claim to Trial

April 19, 2017    
Q: A provision in my lease for space in a retail center specifies that I must fix any damage to the elevator that I use as part of my business. The owner recently discovered that the equipment has been damaged, and it sent me a notice to cure. However, I think the damage occurred before I moved...
Tenant Loses

Tenant's Inconvenience Didn't Override Owner's Decision to Terminate

April 19, 2017    
Facts: A tenant leased space in a shopping center for its restaurant. The tenant had an option to renew its lease, but had to exercise that option a year before the lease term was to expire. The tenant claimed that it sent a letter to the owner of its space, letting it know that it would renew its...
Feature

Sublet to 'Approved Franchisee' Without Consent

March 29, 2017    
Both commercial real estate owners and tenants that are franchisees have control issues that come to the forefront when negotiating leases. Owners—especially those of retail centers—are under pressure to keep a winning synergy of tenants going while also honoring exclusive use and...
Negotiating Tips

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 at...
Plugging Loopholes

Keep Control Over Cost of Owner's Marketing Plan

March 29, 2017    
Advertising can be the make-or-break factor for some businesses, especially those that are new or are located in an out-of-the-way area. Because it never hurts to have ample advertising for your business, if your center has a promotional fund, it can be a great way to get your name out there...
Q & A

Following Rules During Post-Lease Tenancy

March 29, 2017    
Q: My retail business is in trouble, but instead of closing, I’m trying to find a buyer. The owner of the space has obtained an eviction order because I had defaulted on my rent obligations. Now, I’ve offered to pay the back rent, plus an additional amount in exchange for the owner...
Dos & Don'ts

Don't Get Trapped Into Unpredictable Renewal Rent

March 29, 2017    
You may think that you’ve won if you’ve negotiated a renewal option in your lease, which is a valuable right to many tenants. The downside is that many renewal options don’t specify what the renewal rent will be; they refer only to “the fair market rate.” If that...
Dos & Don'ts

Use 'Abandon' Not 'Vacate' in Default Provision

March 29, 2017    
It’s crucial to choose most words in your lease carefully, but some are even more important than others—if they would determine whether you’ve defaulted on the lease. If you and the owner agree that giving up your space prematurely will trigger a lease default or another lease...
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