Feature Articles

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...

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...

Luxury Tenants Switch Tacks for Location, Lease Rights

November 21, 2018

Luxury retailers, who traditionally have been less affected by market troubles, are now finding themselves with the conundrum of finding their niche within their niche. Changing consumer attitudes and rents outpacing sales are prompting these tenants to rethink how they brand themselves—to...

New Mall Leasing Model Gives eCommerce Retailers a Chance

November 21, 2018

Retail brands that have done business exclusively online are getting the benefit of a low-risk entry into the brick-and-mortar world. Malls are providing these “digital native brands” with the opportunity to rent space without the typical lengthy commitment—offering what’...

Retail Experts Clash with Small Business Proponents Over NYC Law

November 21, 2018

The New York City Council is debating a bill it says could help storefront vacancy by giving small businesses a leg up on the competition. It held a hearing on the Small Business Jobs Survival Act, a bill that proponents say could help small businesses negotiate more equitable lease terms—...

Carve Out Rights in Comprehensive Memorandum of Lease

October 31, 2018

If the owner of the shopping center or office building where you lease space has financial difficulties, it may be dealing with one, or even several, liens filed against the property. If you don’t have priority if the owner becomes bankrupt, you could be dramatically affected, up to and...

Negotiate Four Key Management Fee Pass-Through Issues

October 31, 2018

Management costs for a commercial real estate property can be onerous for landlords. So your office building or retail space’s landlord, like many others, could try to collect its management costs by charging a management fee—that is, a fee that reimburses the owner for the costs it...

Fight Owner's Attempt to Change Nature of Tenants

September 28, 2018

Tenant mix is a key component of a shopping center or mall tenant’s strategy for financial success. This mix, also known as synergy, boosts foot traffic, increases the likelihood that customers will stay longer, and can make the property into a “destination” center. The types...

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...

Keeping Excess Rent from Sublet of Space That Breached Lease

September 28, 2018

Q: I signed a lease with the owner of a storage space facility, but I no longer need that space because the owner of the shopping center where I run my business has offered to allow me to keep inventory there. I don’t want to incur...

What to Consider Before Signing Lease for Retail Space in Airport

August 28, 2018

Leasing nontraditional space can work out better for some tenants than traditional space would. Multiple types of nontraditional space have popped up and become available over the past few years. Airports are no exception, with travelers—who are a captive audience—buying more than...

Draft Airtight Termination Clause

August 28, 2018

Owners of office building and retail space typically are very reticent to give a termination right to tenants in their leases. Owners run the risk of losing a large amount of money; allowing a tenant to get out of its lease early can render costly improvements and other expensive items...