Drafting Tips

Draft Narrow Termination Provision to Keep Tenant from Exiting Deal

August 30, 2018    

If you own office building or retail space you’re probably very reluctant to give a termination right to your tenants in their leases. You run the risk of losing a large amount of money; allowing a tenant to get out of its lease early can render costly improvements and other expensive...

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...

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...

Keep Crowds Under Control at Your Property

May 18, 2017    

Depending on the particular synergy of tenants that you are going for, renting space to a restaurant tenant may be a desirable way to fill up space in your building or draw customers to your center. But problems can arise with restaurant tenants that just don’t apply to retail tenants. For...

License v. Lease: When to Use a License Rather Than a Lease

August 10, 2016    

CRE owners should be aware of situations in which a license agreement may prove to be more beneficial than a leasehold interest. The key factors that distinguish a license from a lease are the ability to revoke the licensees’ use at will, and the degree of control that the property owner...

Rent Acceleration Clauses: Discount to Present Value

August 10, 2016    

Rent acceleration clauses in commercial real estate leases are often the subject of contentious negotiations between the parties, and increasingly, the subject of review by courts when enforcement is challenged by tenants and guarantors.

Rent acceleration clauses protect the owner by...

Specify That Tenant's Additional TIA Won't Be Abated

July 25, 2016    

In a strong tenants’ market, you might find yourself fighting for good tenants that help the synergy at your center or serve as a destination spot that will draw and keep foot traffic. You may be forced to offer incentives, like a tenant improvement allowance (TIA) that’s bigger than...

'Deem' the Square Footage Numbers in Your Lease

February 23, 2016    

Ideally, you’ll want to keep square footage and dimensions out of your lease or attached floor plan because those numbers can easily become the focus of a dispute. But you may have to include square footage or dimensions in certain circumstances—for example, if you’re dealing...

Specify Which Alterations Tenant Can Make Without Your Consent

December 21, 2015    

Many tenants need major improvements made in their space in order to accommodate their businesses. Franchisee tenants need space that looks a certain way, retail clothing stores need shelving, and restaurants might need built-in seating. This will probably be spelled out in the tenant...

Spell Out When and How You'll Refurbish Tenant's Office Space

September 17, 2015    

Office building tenants with long lease terms may be concerned that their office space will begin to look shabby in the future. These tenants argue that the rent they’ll be paying in the last few years of the lease won’t reflect the reality of wear and tear like peeling paint and...

Draft Assignment Clause that Anticipates M&A Trends

May 27, 2015    

Commercial real estate lease assignments might seem straightforward for both office and retail space: A tenant that wishes to leave its space finds another tenant willing to take over the space and the original tenant’s lease. And, typically, the lease’s assignment clause will...

Draft Nonwaiver Provision to Collect Partial Rent After Eviction Notice

September 29, 2014    

If you have a tenant that fails to pay its rent, you may decide to send it an eviction notice so that you can kick it out of its space—and even start the eviction proceeding. But if the tenant pays you some—but not all—of its overdue rent after getting your eviction notice (and...

of 5Next