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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...
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...
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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...
Drafting Tips

Control Use and Operation of Food Court Area

March 27, 2018    
Adding a food court—a special area dedicated to small restaurant tenants selling a diverse selection of carry-out or ready-to-eat food customers can consume in a common seating area—can be a great way for shopping center owners to generate income. And it can help extend the length of...
Q & A

Avoiding Liability When One Tenant Violates Another's Exclusive

March 27, 2018    
Q: Two tenants at the shopping center I own are currently in a dispute about who has the right to sell a certain product. A toy store tenant signed a lease with an exclusive use clause that gives it the right to be the only tenant in the center that sells toys. A variety store signed a lease that...
Owner Loses

Landlord's Board Testimony Regarding Damages Was Improper

March 27, 2018    
Facts: A dry cleaning business subleased space in a shopping center. The business owner was also the guarantor on the sublease. The subtenant prematurely vacated the space. The landlord sued the subtenant. A trial court ruled in favor of the landlord, awarding it $343,000 in damages. The damages...
Owner Wins

Landlord's Unlawful Detainer Action Didn't Bar Subsequent Lawsuit

March 27, 2018    
 Facts:  After a retail tenant stopped paying rent, the owner of the center asked a trial court for an “unlawful detainer” so that it could physically evict the tenant. An unlawful detainer action is a summary proceeding designed to adjudicate the right of immediate possession...
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Take Key Factors into Account Before Leasing to Restaurant Tenant

February 23, 2018    
Over a million restaurants in the United States generate billions in sales each year. Commercial property owners know that having a visible and successful restaurant is not only lucrative, but also can be an amenity that improves the image of the property and provides an essential service to...
Drafting Tips

Make Sure Indemnification Clause Covers All Bases

February 23, 2018    
While sometimes an owner’s failure to keep a center safe causes issues, tenants are also capable of actions that cause problems, too. And that’s where arguments and litigation arise. An owner is typically responsible for maintaining the common areas of its building or center, so if...