Be careful how you describe the termination right you give a tenant. If you grant the tenant a right to terminate its lease in the event its business is sold, for example, make sure the tenant is required to exercise that right within a specific time period of the sale date. Consider what...
It’s common in most leases to end a list of items with the phrase “including, without limitation,” or “including, but not limited to.” Those phrases are meant to indicate that the list isn’t exhaustive. But if you forget to use them consistently throughout the...
If, like many shopping center owners, you provide off-site traffic improvements for your tenants, you should make sure that you’re compensated for that. After all, these improvements—for example, special signage and lighting in areas leading to the property or a way to control the...
While many commercial leases are for several-year terms, it might behoove you to agree to a month-to-month tenancy with a tenant. Month-to-month tenants can be part of a strategic plan for your property, especially if you have spaces that you’d like to collect rent for in the short term...
Some office building or mall owners put out “wet floor” signs during rainy or snowy weather to warn customers about slippery conditions that could quickly develop on the floors of the property. In just a few minutes, water can collect, creating a hazard. It’s important to be...
Sometimes a clerical mistake, such as an incorrect date or a misspelled name, is made on a lease document. But if the mistake isn’t caught and corrected, it can lead to a dispute later between you and your tenant—especially if the...
You may have a “wish list” for items you would like to include in your lease with a prospective tenant, but be careful not to overdo it. Big box tenants or those with a lot of bargaining power are more likely to balk at requests for...
Don’t rely on an “implied” continuous operations covenant—that is, one that isn’t expressly stated in the lease—if you want your retail tenant to continuously operate from its space. Some courts might find that...
If you’re negotiating a lease with a tenant that primarily sells consumer electronics and appliances, don’t agree to exclude sales of extended warranties, subscriptions, repairs, delivery, and other services from the definition of...
Recent natural disasters and extreme weather have forced some tenants out of business or have forced them to relocate after their space has been damaged. And many shopping centers have felt the effects of a tenant shakeup. Aside from dealing with...
Depending on whether your property manager is a third party or works directly for you, it will probably check in differently. Because it’s providing financial information to you, a third-party property manager is obligated to report to you at least monthly regarding financial issues and...
To maximize your property’s value and profit, limiting premises liability should be a priority for you—and you should communicate this to your property manager, who’s most likely to hear about and react to injuries before you do. To make sure your property manager understands...
