Feature
December 27, 2023
Include 10 terms in your termination option clause.
Extraordinary individuals are the driving force behind many startups and small businesses. But leasing to tenants that depend so heavily on such individuals is risky. The business could suddenly come to a screeching halt should...
Plugging Loopholes
December 27, 2023
New local laws may make landlords pay for tenants’ illegal business.
Owner Loses
December 27, 2023
What Happened: An Italian restaurant tried to assign its lease to a steakhouse, but the landlord refused and served notice of termination. The tenant denied committing any lease violation and asked the court to issue a temporary injunction barring the landlord from terminating the lease until the...
Owner Wins
December 27, 2023
What Happened: At first it looked as though the tenant had found a buyer for his dental practice to whom it would assign the lease just as it was expiring on Dec. 31, 2019. But the deal fell through, and the tenant sent the landlord an email in February notifying it of his decision not to renew the...
Owner Wins
December 27, 2023
What Happened: The COVID-19 pandemic forced the owner of an iconic cinema in Minneapolis to shut down and default on its lease with six years left in the term. The landlord sued for liquidated damages of $1.8 million, including $364,212 in unpaid rent and $1,444,258 representing the present value...
Feature
November 28, 2023
But set clear limits.
Prospective tenants who aren’t fully financed might be reluctant to sign a lease unless and until they know they’ll be able to secure an operating loan. If they can’t get the loan they need, they’ll want the right to terminate the...
Drafting Tips
November 28, 2023
Don’t get boxed in by implied use restrictions.
Pop Quiz
November 28, 2023
Just about every lease includes a provision specifying the methods landlords and tenants must use to provide notice to each other. Deviations from notice requirements are a common source of litigation, especially when notice is required to exercise a purchase, renewal, or other lease option. We...
Owner Wins
November 28, 2023
What Happened: Eighteen months after signing a five-year lease, a rug store went into liquidation, stopped paying rent, and abandoned the premises. The landlord then divided the space into two separate units, leasing one to another rug store and the other to a bath floor décor shop.
Owner Wins
November 28, 2023
What Happened: A tenant leased property on a pair of shopping center outlots to operate restaurants. The ground lease required the tenant to pay a pro-rata share of the CAM costs the landlord incurred to keep the common areas in good repair. The landlord sold the property to a new owner who...
