Feature

Draft Airtight Rent Abatement Provisions

April 30, 2018    
Rent abatement is frequently mentioned when discussing commercial leases. But it’s not as simple as including a clause that spells out the circumstances under which tenants are entitled to withhold rent. There are many variables and, if you don’t draft rent abatement provisions...
Negotiating Tips

Carve Out Owner-Favorable Flexibility When Negotiating Visibility Protection

April 30, 2018    
Because visibility of its show windows and storefront signage is always a concern for retail tenants, a discussion about visibility will inevitably come up in negotiations for a lease for space at your center. Savvy tenants will demand that you agree in the lease not to block this visibility. But...
Dos & Don'ts

Don't Renew Lease Without Release from Litigation

April 30, 2018    
Suppose your lease doesn’t give a “problem tenant” a renewal option, but the tenant wants to stay in its space. You might be tempted to allow it to stay if the tenant is important to the synergy at your center or serves some important purpose in your office building. This is your...
Dos & Don'ts

Get Control Over Bankrupt Tenant's Proposed Assignee

April 30, 2018    
Unfortunately, tenant bankruptcies are something you’ll probably have to face if you own an office building or shopping center long enough. You need to take every step possible to protect yourself. The good news for shopping center owners is that bankruptcy laws give you more assignment...
Owner Loses

Landlord Must Complete Improvements to Collect Rent Under Lease

April 30, 2018    
Facts: A marine supply store signed a lease for retail space. Under the lease, the owner of the space needed to complete improvements to the property before delivering possession. The lease included the following in its definition of “delivery”: “Landlord shall be deemed to have...
Owner Loses

Tenant Didn't Waive Right to Collect Damages for Medical Equipment

April 30, 2018    
Facts: The space that a medical office tenant leased for its operations was flooded several times due to leaks in the building’s roof. Each time a flooding incident happened, the tenant informed the owner, who refused to make repairs. The tenant lost over $1.5 million in equipment due to...
Feature

How to Draft Owner-Friendly Lien Subordination Agreement

April 10, 2018    
Tenants often seek financing to help them run their businesses, so you have probably gotten numerous requests from tenants for a “landlord’s lien waiver.” Without the lien waiver, a tenant’s lender may refuse to go through with the loan, or an equipment lessor may refuse to...
Feature

Lease Every Area of Property to Maximize Revenue Stream

April 10, 2018    
No matter how successful you are at minimizing costs and maximizing profits from your leases with tenants at your shopping center or office building, there’s no reason to overlook new ways to generate more rent and income. After all, the real estate market is never 100 percent certain, and...
Owner Loses

Trial Necessary to Determine Whether Cotenancy Clause Constituted "Liquidated Damages"

April 10, 2018    
Facts: A clothing retailer tenant signed a lease for space at a shopping center. The lease included cotenancy provisions that required the owner to lease space to three major tenants. If all three tenants were open and operating continuously, the retail tenant paid minimum rent. In the event that...
Feature

Require Tenant to Reimburse You for Unamortized Improvements

March 27, 2018    
When a tenant violates a lease that subsequently ends in termination, shopping center and office building owners might be looking at hefty costs that at least initially will fall on them. Lost rent and the cost and effort of finding a replacement tenant can reach into the tens of thousands of...