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Negotiate 12 Key Points in Security Deposit Clause

August 15, 2018    
Although leases provide remedies for many types of breaches, it can be hard to collect money later from an erstwhile tenant. Two major financial issues for owners are lease defaults and damage to space. If you’ve dealt with one or both of these potentially very expensive issues in the past,...
Dos & Don'ts

Capture Gross Sales from All Tenants That Fill Specific Space

August 15, 2018    
Gross sales clauses can be very lucrative for owners because they aren’t limited to collecting just base rent—the percentage of sales a tenant must hand over could potentially be more than its actual rent. But a problem crops up for you when other tenants use the named tenant’s...
Dos & Don'ts

Don't Let Tenant Use Space for Non-Sales Purposes

August 15, 2018    
So much retail business is done online that it’s common for tenants that are pulling in profits that way to use their brick-and-mortar spaces for purposes related to the business, but not to actually sell products. For example, a tenant with a successful website might turn its store into a...
Dos & Don'ts

Collect Sales Owed from Retail Kiosks

August 15, 2018    
If you grant a license to kiosks and carts to conduct business at your center, make sure that you audit the books and records of a set percentage of those kiosks and carts each year to verify their gross sales. It’s not uncommon for kiosks and carts to submit gross sales statements that...
Owner Wins

Method for Determining Renewal Rent Must Be Sufficiently Definite

August 15, 2018    
Facts: A tenant that operated a market and deli entered into a lease for retail space. The lease was for five years ending in May 2016. The rental rate for the initial term was $5,500 for the first two years, and $6,000 for the remaining three years of the lease. The lease contained a renewal...
Feature

Negotiate Win-Win Property Insurance Deductible Clause

July 19, 2018    
Tenants large and small are attracted to the best deals for commercial space. But savvy tenants know that bottom line-friendly deals aren’t limited to items like comparatively low base rent rates or generous concessions and improvement allowances that beat offers from other landlords....
Plugging Loopholes

Add Protections to Make Tenant's Contraction Option Airtight

July 19, 2018    
During the economic downturn several years ago, contraction options—which let tenants give back part of their space during their leases and pay a lower rent—became popular because downsizing was one way for tenants in trouble to scale back costs. But two now-common commercial real...
Owner Wins

Lease Required Tenant to Make Interior Repairs

July 19, 2018    
Facts: A bank leased space for its branch in a retail center. Over the course of several years, the tenant experienced sewer backups and other plumbing problems. It repaired these problems without giving notice to the landlord. After the tenant suspected that water damage had led to mold in the...
Feature

Negotiate 11 Safeguards in Insurance Clause for 'Hazardous' Materials Tenant

June 20, 2018    
A big part of successfully running a shopping center is ensuring the safety of tenants, their employees, your employees, and customers. With security cameras or a security guard and alarms, you might think that you have the safety aspect of your operations locked down. But here’s something...
Owner Wins

Landlord Not Liable for Damage after Month-to-Month Tenancy Terminated

June 20, 2018    
Facts:  A medical tenant clinic signed a lease that it renewed for an additional five-year term. During the initial and renewal term, the tenant paid monthly rent on time. After the renewal term was over, the tenant didn’t renew the lease formally; it continued to stay in the space and...