Feature Articles

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...

Taking Two Steps to Find Solid Retail Space

January 31, 2018    

Q: As a first-time business owner, I’ll be looking for retail space in a shopping center. What should I be aware of when visiting properties and before signing a lease?

A: ...

Negotiate Tenant-Favorable Holdover Clause with Owner

December 22, 2017    

The point of agreeing on a lease term—which specifies the dates on which the tenant may move in and by which the tenant must move out of the space—is to provide both sides with advanced notice so they can make decisions that can have serious financial consequences. When the lease...

European Mall Operator Banks on Luxury Mall Success in U.S.

December 22, 2017    

The typical American shopping mall landscape has changed drastically—and for the worse—in recent years, in large part because nearly every item sold from a traditional brick-and-mortar store can be purchased online. Consumers who would rather devote time to things other than driving...

Protect Your Interest in Opening New Store Locations

November 30, 2017    

It’s common for retail tenants to agree to a percentage rent arrangement in their lease with the owner of a shopping center or strip mall. That is, the owner will reap a predetermined percentage of certain profits made by the tenant, in addition to base rent. Owners are fiercely protective...

Report: Tenants Can Position Themselves Well in 2018’s Changing CRE Market

November 30, 2017    

Finally, after years of fluctuations that only sometimes favored the commercial real estate market, experts have predicted that slow and steady progress will rule the day—at least for 2018. Accounting firm giant PricewaterhouseCooper (PwC) and the Urban Land Institute (ULI) have put out...

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...