Dos & Don'ts

Check Conflicts of Interest Before Offering Deal Details

August 30, 2018    

Before retaining a real estate attorney for a new deal, don’t spend time and money disclosing the deal’s details to her before you are sure that no conflict of interest exists that could prevent her from fairly representing your interests. This applies whether the attorney is new to...

Don't Include Stairs in Tenant's Square Footage

August 30, 2018    

If your commercial property has more than one level, it will have at least one set of stairs. You may be wondering if you could include the stairs leading to, say, the dance studio in the square footage, and whether it’s customary, or even legal, to include stairs leading to a second-story...

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...

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...

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...

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...