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Leave Room for Growth with Flexible Radius Clause

December 8, 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...

Paying Attention to Terminology in Default Provision

December 8, 2017    

Q: I’m currently negotiating the default provision in my lease for commercial space. Are there specific words that I should use, rather than others, and why is it important to be so specific?

Pay Attention to What You State in Estoppel Certificate

December 8, 2017    

If you’re required to sign an estoppel certificate as part of the process of renting space from the owner of an office building or shopping center, pay attention to what you’re agreeing to in that document. A recent New York case highlighted the fact that what a tenant pledges in an...

Are You Getting the Refurbishment Allowance You Need?

November 10, 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...

Look for Red Flags When Accepting Incentives

November 10, 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...

Negotiate Lease Clause for UCC Liens

October 27, 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...

Give Yourself an ‘Out’ If New Location Doesn’t Work for Business

October 27, 2017    

Although the other locations of your retail business might have done extremely well, be aware that a new location captures a slightly different customer base. But you can have flexibility if things don’t work out there, by building into your lease a “performance kickout right,...

Place Emphasis on Finding Out Space's Loss Factor Figure

October 27, 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...

Protect Benefits of Your Retail Location

September 21, 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...

Nail Down Automatic Renewal’s Specific Terms

September 21, 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 agree to a vague automatic renewal clause, it can work against you.

Asking to Renegotiate Lease

September 21, 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...

Getting Exclusive Use Priority Over Other Tenants

August 24, 2017    

Exclusive use is not just a way to guarantee success for some tenants who want a monopoly so to speak on selling certain goods or services. It’s also a hotly negotiated lease right. Because it’s on the radar for most tenants during negotiations, you might expect that all centers have...