Protecting Against Lost Rent for Tenant's Changed Circumstances
Q: I own a mixed-use building that has retail stores on the ground floor and residential units on the floors above. The ground floor is specifically zoned for retail use. Should I factor in the potential for zoning changes in my leases, and if so, how?
A: Yes. Zoning laws, which are subject to change, present challenges. This will be part of negotiations with tenants and will affect the way that you draft leases.