Commercial Lease Law Insider

Feature

Use Radius Clause to Protect Your Percentage Rent from Tenant

November 14, 2018    
Making a profit from tenants at your shopping center or mall depends on many factors—one of which is the key percentage rent arrangement. Percentage rent allows you to collect not only base rent, but also a percentage of the tenant’s gross sales done at the space it leases from you. But...
Q & A

Can Tenant Exercise Purchase Option Despite Missing Deadline?

November 14, 2018    
Q:  A tenant negotiated an option to purchase the space it will be leasing from me at one of my free-standing properties, after it has operated there for a certain number of years. The notice requirements for exercising the purchase option are very clear; however, I’m concerned that if...
Owner Loses

Jury Trial Needed to Determine Maintenance Responsibility

November 14, 2018    
Facts: A jewelry store tenant that leased space in a shopping center complained repeatedly about a sewage smell and mold problem in the store. It claimed that it was losing business. Its complaints were documented in multiple emails over the course of several months. For its part, the landlord had...
Feature

Get Control Over Content in 'Short-Form Lease'

October 18, 2018    
If you own a shopping center or office building and have financial difficulties, you may be dealing with one, or even several, liens filed against the property. A savvy tenant knows that if it doesn’t have priority if you become bankrupt, it could be dramatically affected, up to and including...
Plugging Loopholes

Spell Out Right to Keep Unapproved Sublet Profits

October 18, 2018    
When you negotiate a lease with a tenant, you and your attorney try to cover all your bases—drafting provisions that protect you in every conceivable circumstance under which the tenant would breach the lease during the lease term. However, one situation isn’t as common as other types...
Owner Wins

Lease Agreement Foreclosed Tenant’s Ability to Collect Condemnation Award

October 18, 2018    
Facts: A large national retailer leased space in a shopping center that later had a major access point blocked by the state’s department of transportation as part of a “condemnation.” The landlord and tenant each asked the state for a “condemnation award.” The lease...
Feature

Prevent Detrimental Effects of Large National Tenant's Use Change

September 26, 2018    
Owners who lease space to large national retail tenants know that their demands can be hard to resist. Use of the space is the number one concern for these tenants. Often, they ask for flexibility in their use of the space that puts owners at a disadvantage. A lease that allows a tenant to use the...
Drafting Tips

Use 'First-Run' Language in Movie Theater's Use Clause

September 26, 2018    
If you own a shopping center or mall, you know that the success of your tenants is connected to the amount of foot traffic that you can bring in. Movie theaters are a great example of one type of tenant that attracts crowds. But not all movie theaters show films that are of interest to a wide...
Q & A

Protecting Against Lost Rent for Tenant's Changed Circumstances

September 26, 2018    
Q: I own a mixed-use building that has retail stores on the ground floor and residential units on the floors above. The ground floor is specifically zoned for retail use. Should I factor in the potential for zoning changes in my leases, and if so, how? A: Yes. Zoning laws, which are subject to...
Owner Wins

Landlord's Promise to "Work on" Renewal Wasn’t Fraudulent Inducement

September 26, 2018    
Facts: A tenant rented space to operate its nail salon under a lease that was assigned to it by the original tenant. The lease provided for two additional five-year terms. In order to exercise a renewal option, the tenant had to give written notice 120 days prior to the end of the term stating that...