Online Alerts

Negotiate One of Two Rights to Expand Space

August 10, 2018    

The economic downturn several years ago changed the commercial real estate market in many ways, most notably, in tenants’ need for space. Some tenants turned to trying to profit from online sales, which saved money on rent for physical space. Office tenants also tried to shore up losses by...

Address ADA Violations Immediately

August 10, 2018    

Tenants have many responsibilities when it comes to the space they lease, and issues that aren’t of immediate importance, namely those things that turn a profit, can get lost in the shuffle. But don't be unconcerned about Americans with Disabilities Act (ADA) violations in your store...

Don’t Agree to Weaken Exclusive Use Right

August 10, 2018    

Exclusive use clauses can be formidable for owners, so it’s not unusual for them to agree to give this right to a tenant but weaken it by adding a “gross sales drop” requirement, which can kill an exclusive for the tenant. That’s because it puts the onus on you if there...

Get Right to Complete Owner’s Unfinished Work

July 20, 2018    

Most tenants, whether in an office building or retail space, need at least some improvements in order to make the space usable. So it’s common for owners to agree to make and pay for even extensive improvements, through a tenant improvement allowance (TIA), to entice tenants to sign a...

Be Aware of Co-Tenancy Violation Prescription Period

July 20, 2018    

If you own multiple businesses, it’s easy to lose track of things like co-tenancy requirements. Unfortunately, you might run into a situation where the owner of the shopping center where you lease space for one of your businesses breaches the lease by not replacing a tenant that went out...

Don't Allow Limits on Subtenant, Assignee Signage

July 20, 2018    

Q: I am negotiating a lease for space that I will probably have to sublet or assign in the future. How can I avoid being barred from doing this later by the landlord?

Avoid Pitfalls of Poorly Drafted Work Letter

June 14, 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...

Separating Rent and Eviction Into Two Claims

June 14, 2018    

Q: I owe several months of back rent for the space I lease in a shopping center. The owner has threatened to bring an unlawful detainer action. I understand that an unlawful detainer action pertains to eviction. If I win, could the owner...

Don’t Assume Owner Is Correct If You Must Cure

June 14, 2018    

When you get a notice to cure—a document that informs you of an alleged lease violation and gives you an opportunity to correct it—you'll want to act quickly or your lease could get cancelled. But don't act so quickly that you don't carefully analyze the notice first to...

Understand How Operating Expense Costs Affect You

May 11, 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...

Implied Good Faith and Fair Dealing Doesn’t Trump Temporary Lease Agreement

May 11, 2018    

Q: I operate a kiosk at a shopping mall under a temporary lease agreement. I think that the owner is shirking maintenance for the common areas near my location. My agreement doesn’t specifically mention the owner’s obligation to...

Use Disclaimer to Carve Out Right to Break Continuous Operation

May 11, 2018    

Most retail tenants don’t want to be forced to open or continuously operate at their space. That’s because if their business suffers financially, it may be better to not open or go dark rather than lose money. What if your lease doesn’t say that you’re required to open or...