Feature Articles

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...

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...

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...

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...

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...

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...

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...

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...

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...

Demand That Owner Include Environmental Warranty in Your Lease

February 28, 2017    

Relying on oral assurances from the owner of your prospective commercial real estate space is risky. The consequences can range from you being aggravated—for example, if an adjacent tenant that was portrayed during negotiations as being quiet ends up compromising your right to quiet...

Push for Unusual Concessions During Negotiations

February 28, 2017    

Vacancy rates are still a struggle for shopping center and office building owners in some areas. Maybe the local economy isn’t robust and businesses aren’t interested in new office space, an owner’s projections for how much foot traffic a center will see were higher in theory...

Set Reasonable Limits on Access and Alterations Right

February 28, 2017    

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...

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