Feature

How to Use 'Baseball Arbitration' to Resolve Renewal Rent Disputes

September 21, 2021    
Make sure your arbitration rules cover all the bases.  
Pop Quiz

Why Was This Relocation Clause Unenforceable?

September 21, 2021    
Every time you lease space to a tenant, you incur opportunity costs to the extent a more desirable tenant in need of that same space turns up later. That’s why clauses allowing you to relocate tenants to comparable space within the shopping center or building can be extremely valuable....
Traps to Avoid

Excluding 'Wholesale' Sales from Percentage Rent Can Cost More Than You Bargained For

September 21, 2021    
Some types of percentage rent tenants, such as building supply and paint stores, are apt to insist on carving out “wholesale sales” since they make less profit on those sales. You may have little choice but to accept this demand, especially when the tenant is a retail giant like Home...
Owner Wins

Landlord Not on the Hook for Construction Defects in Improvements

September 21, 2021    
What Happened: Under a “build to suit” lease, a landlord purchased a property, made a construction contract with a builder chosen by the tenant, Dairy Queen (DQ), financed a reconstruction of the premises to a DQ restaurant, and leased the reconstructed premises to the tenant. Things...
Owner Wins

Mold that Could’ve Been Discovered ≠ Breach of Implied Warranty of Suitability

September 21, 2021    
What Happened: Upon taking possession of the premises she had just leased for use as a daycare center, a tenant detected a strange odor. It turned out to be mold, and the environmental consultant’s report showed that it was all over the walls and in the carpeting of the spaces designated for...
Feature

Get 12 Protections When Leasing to a Medical Tenant

August 24, 2021    
Physician practices, pathology labs, ambulatory surgery centers, clinics, and other medical providers need commercial space to lease. To obtain it, they’re willing to go not only to offices but also malls, retail outlets, and other nontraditional properties. All of this creates new...
Pop Quiz

When Does the Landlord’s Duty to Refund a Security Deposit Start to Run?

August 24, 2021    
Security deposits remain a bone of contention in commercial leasing litigation, particularly now that COVID-19 eviction restrictions have been lifted. Typically, the obligation to return the security deposit begins when the tenant surrenders the premises. The following scenario, which is based on...
Plugging Loopholes

Don't Inadvertently Give Defaulting Tenant an Option to Buy

August 24, 2021    
The last thing any landlord wants is to allow a tenant to purchase the property while it’s in default. Unfortunately, that’s exactly what you might have to do if the purchase option clause in your lease contains a common loophole.  
Owner Loses

Tenant’s Request for Buildout Delay Isn’t an Anticipatory Breach

August 24, 2021    
What Happened: Under the terms of a 10-year restaurant lease, the obligation to pay rent didn’t kick in until the buildout was complete and the tenant began operating in the space. With work on the premises still to be done, the governor issued a COVID-19 shutdown order. Three months later,...
Owner Wins

Arbitrator Went Too Far in Awarding Tenant Lost Profits

August 24, 2021    
What Happened: After waiting a year and a half, the tenant claimed that the landlord was in violation of its lease duty to complete the repairs necessary to make the 10,000 square feet of leased space suitable for use as a laser tag/pizzeria establishment. As provided under the lease, the dispute...