Feature Articles

Get Control in Work Letter to Avoid Hidden Costs

May 24, 2018    

If you’re negotiating a lease for space that will need construction work before you can occupy the space and do business there, you’ll face issues that are crucial for you to address. A major concern you should have is the “work letter,” which is typically an exhibit to...

Extend Performance Time for Lease Obligations

May 24, 2018    

Like some often-overlooked provisions in commercial leases, a “force majeure” clause is a protection for tenants that ideally won’t be utilized. But, if you have to call on that clause, you’ll be happy if you spent the time and effort to negotiate and draft one that...

Staying Within 'Prescription Period' to Sue for Co-Tenancy Violation

May 24, 2018    

Q: Because I own multiple businesses, it’s easy to lose track of things like co-tenancy requirements. After the owner of...

Avoid Common Pitfalls When Drafting Operating Expense Clause

April 25, 2018    

While there are many issues to be concerned with when signing a lease for commercial space, tenants often focus on what’s typically the most hotly contested provisions—exclusive use and cotenancy. The right to be the only tenant to sell a product in a center, or get the benefit of...

Make Six Modifications to Owner's Rent Acceleration Clause

April 25, 2018    

Aside from termination rights, rent acceleration clauses are considered by tenants to be one of the harshest measures an owner has at its disposal as a remedy for nonpayment. This type of clause allows the owner to “accelerate” the rent due if you default. Essentially, a rent...

Take Two Steps to Push Owner into Returning Funds at Lease's End

March 29, 2018    

If you’re close to the end of your lease for space at an office building or shopping center, and you’ve had a good experience with the owner, you might not foresee any issues. Or maybe there have been various problems on either your or the owner’s side of the deal. But...

Draft Detailed Default Clause to Protect Interests in Event of Owner's Lease Violation

March 29, 2018    

Conscientious shopping center and office building tenants should be aware of the responsibilities they agreed to in their leases and make every effort to stick to them. But don’t hyperfocus during negotiations on your end of the bargain; make sure that if the owner doesn’t also live...

Determining Likelihood of Injunction After Exclusive Waiver Is Declined

March 29, 2018    

Q: I signed a lease for space at a shopping center for my business, which sells a variety of entertainment products. At the time I signed the lease, my business didn’t carry toys. Because variety stores typically do sell toys, the...

Include Four Points in Termination Option for Loss of 'Key Player'

February 28, 2018    

Sometimes, tenants get tunnel vision when negotiating leases; they tend to focus on certain issues, like those that will affect them on a day-to-day basis or are pretty likely to happen in the future. But don’t put an emphasis on just tenant improvement allowances, common area maintenance...

Follow Four Steps When Asking Owner to Make Repairs

February 28, 2018    

Unfortunately, the owner of the space you lease might not respond promptly to a problem in your space that needs repair. That’s a serious issues because it could get worse—possibly disrupting your business and damaging your property. So what can you do if you’ve reported that...

Push for Concessions that Compensate for High Rental Rate

January 31, 2018    

While the rental rate for retail or office building space seems cut and dried, many factors go into the ultimate amount you’ll end up paying. Any rent abatement, free rent negotiated, or other concessions will bring down rent figures. But so-called “face rates” can be a driving...

Get Incremental Access to Cash Tied Up in Significant Security Deposit

January 31, 2018    

Tenant defaults sometimes happen, and experienced owners of office buildings or shopping centers know this and ask for a sizeable security deposit from some tenants who seem at higher risk. If this would leave you with less cash flow than you anticipated, you may be able to get your security...