Dos & Don'ts

Negotiate Extension for Delivery of Space

June 20, 2018    

One thing that owners don’t like to hear when negotiating a lease is that the tenant must have possession of the space by some important date, known as the “drop-dead date.” This is an issue because the tenant usually wants the owner to suffer stiff consequences if the drop-...

Don't Take on Liability for Tenant's Visitors

June 20, 2018    

You can’t stop third parties from suing you if they’re injured after hours by someone in your building or center—but you can protect yourself financially in other ways. For example, make a tenant pay for the actions of its visitors, agents, employees, and subtenants. And make...

Don't Renew Lease Without Release from Litigation

April 30, 2018    

Suppose your lease doesn’t give a “problem tenant” a renewal option, but the tenant wants to stay in its space. You might be tempted to allow it to stay if the tenant is important to the synergy at your center or serves some important purpose in your office building. This is...

Get Control Over Bankrupt Tenant's Proposed Assignee

April 30, 2018    

Unfortunately, tenant bankruptcies are something you’ll probably have to face if you own an office building or shopping center long enough. You need to take every step possible to protect yourself. The good news for shopping center owners is that bankruptcy laws give you more assignment...

Eliminate Requirement for Notice of Exercising Remedies

January 23, 2018    

Like many owners, you may have certain tenants that commit the same lease violation over and over. But they always cure—that is, correct—the violation before it becomes a lease default. For instance, they repeatedly pay their rent late each month.

Don't Invalidate Notice If Your Attorney Sends It

January 23, 2018    

If a tenant violates your lease but it doesn’t fall under a “chronic violations clause,” you’re probably required to notify the tenant in writing that if it doesn’t cure—that is, correct—the violation by a set deadline, you can take action against it. If...

Don't Lease to Tenants 'Off Brand' from Synergy

July 21, 2017    

Although the model of the traditional shopping mall—one or more big box or anchor stores as a destination and smaller in-line tenants that benefit from the foot traffic—has changed over the years, the concept of a synergistic relationship among tenants continues. Convenience is key...

Design Crowd Control Strategy for Holiday Season

July 21, 2017    

With the start of the holiday season coming up, kicked off by Halloween and ending after Christmas, you should start to prepare for the inevitable increase in foot traffic at your shopping center. You can do this by addressing two issues: traffic and time.

Don't Forget Nonwaiver Provision to Help Evict Tenant

June 21, 2017    

An eviction right in your lease is invaluable if things go south with a tenant who fails to pay rent, but you could undo what might’ve been a hard-won right for you in negotiations if you accept some, but not all, of the overdue rent even after you’ve started the eviction proceeding...

Expand Parties Covered in 'Additional Insured' Term

June 21, 2017    

Sometimes a lawsuit stems from someone being injured in your tenant’s space. Savvy shopping center and office building owners know that they can protect themselves by requiring the tenant to name them as an “additional insured” on their liability insurance policies. But if your...

Don't Share Profits with Tenant Whose Space Has Been Recaptured

December 16, 2016    

When negotiating your leases, you may want to include a recapture right that you can exercise if the tenant intends to assign its lease or sublet all or part of its space. And you may want to include a profit-sharing clause that will require the tenant to pay all or part of any profit it makes...

Don't Give Tenant Consent Right to Change Unit Number

December 16, 2016    

If a tenant wants you to specify the number of its unit, store, or suite in the lease, then say in the lease that the tenant’s unit, store, or suite is “presently known as [insert Unit/Store/Suite number, e.g., 4B]. The phrase “presently known as” will...

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