Online Alerts

Tailor Recapture Terms to Your Needs

June 15, 2017    

Many leases will provide that if a tenant wants to assign the lease or sublease all or any portion of the space it leases, the owner will have the right to recapture—that is, take back—the space. While both an assignment and sublet of a lease seem to be fairly simple ways to get rid...

Avoiding Trial for Damage Dispute with Owner

June 15, 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...

Understanding Effects of Competing Tenant Exercising Option

June 15, 2017    

If, under your lease, you have a right of first refusal at a certain year to buy the space you rent at a shopping center if a third party makes an offer to buy it from the owner of the property, it might seem pretty straightforward. But if your right of first refusal is subject to another long-...

Don’t Let Billing Delays Affect Your Finances

May 11, 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...

How to Avoid Renewal Rent Trap

May 11, 2017    

Q: I’m negotiating a renewal option in my lease with the owner of my space, which is a valuable right to me. I’ve heard that the downside is that many renewal options don’t specify what the renewal rent will be; they refer...

Don’t Expect Owner to Accommodate Your Inconvenience

May 11, 2017    

Even if you’re on friendly terms with the owner of the space you rent, don’t expect it to accommodate you if you fail to follow lease terms and are afraid of suffering the consequences. A recent court case highlights the point that owners aren’t required to make special...

Get Approval to Sublet to Franchisee

April 13, 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...

How to Continue Getting a Good Deal on CRE Space

April 13, 2017    

Even if your business is expanding and has done well in what has become a “tenant’s market,” you might still worry that, given the current political climate, the market may become unsteady again. If you’re looking at prospective retail spaces soon there are several ways...

Keep Evidence of Owner’s Intent

April 13, 2017    

If the owner of space you lease insists that you’re responsible for certain items and you disagree, make sure you have evidence of what is known as its “course of conduct,” that is, the pattern it has used with you when enforcing your lease. In some cases, an owner’s...

Ensure Recourse Against Faulty Environmental Assurances

March 17, 2017    

Most tenants can’t afford the expensive testing necessary to find out whether hazardous substances are present on the premises they plan to lease. Too often, tenants rely on only the owner’s representations that the space is free and clear of any hazardous substances. That can be a...

Make Sure Guarantor Has Funds to Pay

March 17, 2017    

If the owner of the space you plan to lease requires you to provide a guaranty, make sure that the guarantor has the funds to pay if you can’t. Occasionally, a guarantor will refuse to pay, and an owner is forced to go to court to resolve the dispute. But the threshold is low and...

Keep Competitors’ Signage at Bay

March 17, 2017    

Many commercial leases include language that limits the size of billboards and signage on the roof or exterior, or in the common areas of the office building or shopping center. But tenants sometimes forget to negotiate restrictions on the content of those billboards and signs. It’s a...