Feature Articles

Cover Five Key Issues When Negotiating Refurbishment Allowance

October 31, 2017    

At some point every office building or shopping center—even new and top-of-the-line properties—becomes dated. An owner might update common areas or freshen the exterior of the property, but your space will be your responsibility to keep up to your standards. You might’ve...

Put Onus for Weather-Related Repair Costs on Owner

October 31, 2017    

Q: A couple of years ago, a hurricane damaged much of the shopping center where I lease space. My business had to shut down, but the owner tried to avoid paying to fix any damage so I could get up and running again. I don’t pay...

Limit Snowball Effect of Boosting Base Rent with Percentage Rent

October 31, 2017    

Owners of strip malls are always looking for ways to bring in more income. Unlike office building owners, they have the luxury of using methods other than base rent to make money. For example, percentage rent based on a tenant’s sales is a key method for collected more than base rent at...

Report: Tenant Demand Grows for Reconfigured Former Box Store Space

October 31, 2017    

As online shopping has become ubiquitous over the past several years, with e-commerce giants like Amazon offering seemingly every product under the sun and with free delivery for subscribers, retail tenants that have set up shop in centers and malls have suffered from sales slumps, more or less...

How to Amend Contractual Lien to Preserve Financing Opportunities

September 28, 2017    

First-time commercial real estate tenants—especially small ones or those who don’t have a proven record of success—might face an uphill battle before they can succeed. Financing and leasing issues are the most problematic. Seasoned landlords are aware that taking on smaller...

Don't Rely on Owner's Summary of Exclusives at Center

September 28, 2017    

Q: I’m considering leasing space in a large shopping center where I suspect many tenants already have exclusive use clauses. I need some reliable way of determining whether those rights will affect my ability to sell certain products....

Remember Critical Points in Assignment Versus Sublet Provisions

September 28, 2017    

Assignment and subletting clauses are ubiquitous in retail leases. But don’t let the fact that you hear about them as a standard item let you forget exactly what they do. That’s crucial in negotiations—to understand what you need and ask for it; if you don’t understand...

Negotiate Provisions That Take Advantage of Center’s Redevelopment Plan

August 30, 2017    

The advantages of leasing in a strip mall or shopping center, rather than a stand-alone building, are numerous: good proprietary signage, a desirable tenant synergy, convenient parking, and visibility. And savvy tenants make sure that these benefits—which may be a large part of the reason...

Avoiding Pitfalls of Lease Renegotiation

August 30, 2017    

Q: My business has been experiencing what I anticipate will be a temporary financial setback. I’m considering approaching the owner of the space I lease to ask for a renegotiation that would put things back on track. What are some...

Ask Owner for Space's Loss Factor Figure

August 30, 2017    

If the size of the space you’re considering leasing seems perfect, don’t overlook important issues like making sure that your business actually will physically fit the area. Just because a space is advertised as a certain number of square feet doesn’t mean that all of that...

Don't Agree to Vague Automatic Renewal Clause

August 30, 2017    

If a right to renew your lease is very valuable to you, you might agree to an automatic renewal clause if that’s what the owner insists on. But if you don’t nail down the specifics of the automatic renewal’s terms it can work against you.

Ensure Owner Delivers on Incentives

August 30, 2017    

Guarantors who will back up the obligation of tenants who default on their leases are widely used for commercial real estate deals. But don’t forget that tenants aren’t the only parties that guaranties apply to. Getting a great deal on space is fantastic for tenants, but if you...