Feature

Avoid 4 Costly Pitfalls When Allocating Lease Insurance Duties

November 29, 2022    
One of the few positives to emerge from the pandemic for commercial leasing was how it got landlords and tenants to set aside historical mistrust and work together for their mutual welfare and survival. While the pressing issue at the height of the COVID-19 crisis was restructuring rent obligations...
Drafting Tips

Get 5 Key Protections When Transferring Construction Warranties to Tenants

November 29, 2022    
It’s a common scenario that’s likely to arise any time a landlord hires outside contractors to carry out substantial improvements on a tenant’s premises: The tenant requests that the landlord “transfer” any construction warranties that the tradespeople may have given...
Traps to Avoid

Don't Agree to Keep CAM/Operating Expense Costs “Competitively” Priced

November 29, 2022    
Tenants that must pay common area maintenance (CAM) or operating costs typically want assurances that landlords will keep those expenses reasonable and in line with the average costs that owners of other shopping centers or office buildings in the area pay. And if the tenant has bargaining clout,...
Owner Loses

Tenant Not Liable for Post-Surrender Damages to Property

November 29, 2022    
What Happened: In the summer of 2018, a tax firm tenant shut down its business and moved out of the building it was leasing. The surrender was documented in a written agreement that the tenant and landlord both signed. A few months later, the property was sold. During a severe cold spell in January...
Owner Loses

Lockout Is Illegal Because Tenant Didn't Abandon the Property

November 29, 2022    
What Happened: The tenant was behind on its rent, and the restaurant was closed. So, the landlord assumed that the property was abandoned and exercised its lease right to reenter and change the locks. It then sued the tenant for unpaid rent and late charges. The tenant denied that it had abandoned...
Owner Wins

Real Estate Agent's Duplicity Doesn't Invalidate Bankruptcy Debtor's Lease Rejection

November 29, 2022    
What Happened:    J.C. Penney (JCP) subleased commercial property to Klairmont at below-market rates. Later, it filed for Chapter 11 bankruptcy, giving it the right to assume or reject its commercial leases.
Feature

Cut Losses on Office Tenants' Early Lease Termination

October 24, 2022    
Working from home and other post-COVID business realities have made many office tenants reluctant to sign a long-term lease. One way to overcome this is by offering tenants the option to terminate the lease early if the rent becomes unaffordable or the space becomes unnecessary. But while offering...
Traps to Avoid

"No Representations" Clause Doesn't Bar All Fraud Claims

October 24, 2022    
It’s a clause that almost every commercial lease contains, yet rarely gets even 10 seconds of attention. The clause says something to the effect that “Landlord has made no representations to Tenant other than those contained in the terms expressly stated in this Lease.” The idea...
Pop Quiz

Can Tenants Provide Renewal Notice via Regular U.S. Mail?

October 24, 2022    
“The notice is in the mail.”
Owner Wins

Another Tenant's COVID Frustration Defense Comes Up Empty

October 24, 2022    
 What Happened:  Stop me if you’ve heard this one before: A restaurant tenant struggled to pay rent after the governor issued a COVID-19 shutdown order in March 2020. In August, the landlord sued for breach of lease. The tenant admitted to owing the landlord rent but claimed...