Feature

How to Choose a Lease Commencement Date

November 22, 2016    
Setting a workable commencement date for a lease to begin is one of the most important aspects of lease negotiations. But it often isn’t thought through by either owners or tenants. As with many overlooked parts of a lease deal, it takes a back seat to big ticket items like cotenancy clauses...
Q & A

Spelling Out Who's Responsible for Ice Removal in Common Areas

November 22, 2016    
Q: I’m a first-time shopping center owner in a northern state where snow and ice is prevalent in the winter. I’m afraid that if shoppers slip and fall in the common areas outside tenants’ stores, they’ll sue me. If my leases make me responsible for plowing and shoveling...
Owner Wins

Competing Restaurant Wasn't 'Similar in Concept'

November 22, 2016    
Facts: A restaurant with a 1950s American roadside diner theme leased space at a shopping center. Later, the owner signed a lease with a pancake house restaurant franchisee for space nearby. The tenant asserted that the new lease with the pancake restaurant violated a restrictive covenant in its...
Owner Loses

Yellowstone Injunction Awarded to Give Longer Cure Period

November 22, 2016    
Facts: A tenant that operated a gym received a notice from the owner of its space ordering it to obtain the proper permits to operate its business, which were required by its lease. The tenant asked a New York trial court for a Yellowstone injunction, which would toll—that is, pause—the...
Dos & Don'ts

Don't Describe Termination Right Tied to Specific Event as 'Ongoing'

November 22, 2016    
Be careful how you describe the termination right you give a tenant. If you grant the tenant a right to terminate its lease in the event its business is sold, for example, make sure the tenant is required to exercise that right within a specific time period of the sale date. Consider what happened...
Feature

How to Ensure Tenants Will Pay Your Entire Insurance Cost

October 21, 2016    
Your shopping center leases probably require each tenant to pay its share of the center’s fire insurance, liability insurance, and other kinds of insurance. However, if you want to pass through your insurance costs to your tenants as a separate component of common area maintenance (CAM) costs...
Plugging Loopholes

Don't Get Left on Hook for Costs of Enforcing Illegal Exclusive

October 21, 2016    
The exclusive right to sell a product or provide a service at a shopping center is invaluable to a tenant. The tenant won’t have any direct competition for profits, which sometimes means that it can set prices that would otherwise have to be lower to lure customers away from other businesses...
Q & A

Specifying Laws in Lease

October 21, 2016    
Q: One of the spaces at my shopping center is set up for a dry cleaning business, which has a higher risk of causing environmental damage. The tenant who moves into that space would be required to follow specific guidelines and be subject to certain environmental laws that other tenants aren’...
Dos & Don'ts

Don't Use 'Including' Unless You Define It in Lease

October 21, 2016    
It’s common in most leases to end a list of items with the phrase “including, without limitation,” or “including, but not limited to.” Those phrases are meant to indicate that the list isn’t exhaustive. But if you forget to use them consistently throughout the...
Dos & Don'ts

Pass Through Off-Site Traffic Improvement Costs to Tenants

October 21, 2016    
If, like many shopping center owners, you provide off-site traffic improvements for your tenants, you should make sure that you’re compensated for that. After all, these improvements—for example, special signage and lighting in areas leading to the property or a way to control the flow...