Feature

Follow Two-Step Lease Enforcement Plan for Imminent Eviction

September 26, 2016    
Nonpayment of rent is the most common breach of a tenant’s lease—and can be a major signal that trouble is on the horizon. That trouble could come in many forms: A tenant becomes bankrupt or has financial issues, it withholds its rent because of a perceived problem that you’ll...
Negotiating Tips

Don't Lead Tenant to Reasonably Rely on Promises of Your Employees

September 26, 2016    
Commercial property owners, and especially those that own large or multiple properties, are likely to have several employees. If you have a staff of professionals who help you operate your properties, be very careful about how much official power you give to them and how much interaction they have...
Q & A

Keeping Up Standards for Returning Space

September 26, 2016    
Q: It would be easier for me to sign a new lease with one of my office building tenants that wants to renegotiate its existing lease, rather than amend the current one. This is the first time I’ve gone through the process. Is there a common pitfall that owners forget about in this scenario?
Owner Wins

Guaranty Plainly Stated It Was Unconditional Guarantee of Payment

September 26, 2016    
Facts: An office building tenant was in default of its lease and subsequently filed for bankruptcy. The lease had been guaranteed. The guarantor hadn’t filed for bankruptcy. When the building’s owner informed the guarantor that it would have to cover the back rent and other lease...
Feature

Ensure Favorable Rent Escalation for Life of Lease

August 29, 2016    
In a perfect commercial real estate world, shopping center and retail leases wouldn’t be subject to variables that could negatively affect your profitability. In reality, inflation—which is impossible to predict with complete certainty—can affect your bottom line unless you and...
Plugging Loopholes

Don't Rely on Guarantor's Personal Liability as Extra Assurance

August 29, 2016    
If you’re unsure that a prospective tenant will be able to pay its rent, getting a guaranty can assuage your fears and protect you from not being able to collect what the tenant owes. While a tenant might be able to produce a third party who’s willing to act as a guarantor on the tenant...
Q & A

Prepare for Return of Funds If Commercial Condo Association Won't Approve Lease

August 29, 2016    
Q: I recently bought a building comprised of several commercial condo spaces. A restaurant tenant has expressed interest in one of the spaces, but I’m apprehensive. The space is subject to the governing documents of an association, and restaurant tenants have more hoops to jump through, such...
Dos & Don'ts

Don't Let Non-Lease Tenant Decide When to Give Notice

August 29, 2016    
While many commercial leases are for several-year terms, it might behoove you to agree to a month-to-month tenancy with a tenant. Month-to-month tenants can be part of a strategic plan for your property, especially if you have spaces that you’d like to collect rent for in the short term while...
Dos & Don'ts

Determine Obligation for Weather Hazard Warning

August 29, 2016    
Some office building or mall owners put out “wet floor” signs during rainy or snowy weather to warn customers about slippery conditions that could quickly develop on the floors of the property. In just a few minutes, water can collect, creating a hazard. It’s important to be...
Owner Loses

Landlord Retained Responsibility for Ice Removal

August 29, 2016    
Facts: A grocery store customer who slipped and fell on ice in the strip mall’s parking lot sued the grocery store tenant, the center’s owner, and the snow-removal contractor and subcontractor for her injuries. She asserted that they all had a duty of care to keep the parking lot free...