Drafting Tips

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...

Limit Pre-Lease Inspection Right

June 25, 2014    

A prospective tenant that’s negotiating to lease an entire building or a large space may want to inspect the condition of the space or the underlying property before signing the lease. For example, it might want to do environmental testing or have an engineer or contractor check the...

Set Short Initial Term, Longer Renewal to Entice Small Retail Tenants

April 30, 2014    

Despite an upturn in the economy in many areas across the country, many shopping center owners, especially in areas that are still depressed, are desperate to fill vacancies at their centers. Prospective retail tenants, particularly small retailers, may be hesitant about going into centers...

Get Right to Sublet or Assignment Profit

April 10, 2014    

It’s common for a lease to give an owner a share of any profit a tenant makes if it sublets or assigns its lease. But if you don’t specify this in your lease with the tenant you’ll miss out on this opportunity. And even if you do specify this in the lease, you still need to...

Avoid Ambiguity in Insurance Policy Requirements

January 28, 2014    

It’s crucial that your tenants are adequately insured. To make sure of this, your leases may list by name the insurance coverage that the tenants must get and maintain. If you think you’re covering all your bases by writing this into the lease in such a specific way, you could...

Define "Primary" and "Secondary" Uses in Lease

August 28, 2013    

As a retail property owner, you’ve certainly spent time considering the tenant synergy—that is, stores functioning together to draw shoppers that a center normally wouldn’t capture without them as a group—that will maximize profits. That’s why the use clause in your...

Protect Yourself When Giving Tenant Early Access to Premises

August 9, 2012    

A creditworthy tenant dealing with an overly cautious lender may be confident that its financing will go through, but won’t want to wait until the deal is complete before it signs the lease. Don’t be surprised if the tenant asks you to give it early access to its space, so that its...

Follow Four Dos & Don'ts for Drafting Rent Abatement Clauses

April 12, 2012    

Rent abatement clauses spell out the circumstances under which tenants are entitled to withhold rent. But if you don't draft them carefully, you may overlook specific items that can affect you later if the tenant exercises its right. Here are four Dos and Don'ts to follow to avoid...

Specify 'Ongoing' Right to Terminate Tenant's Lease

March 26, 2012    

Your lease will specify under what circumstances you and the tenant may terminate the lease. It'll also spell out the procedure you must follow to do so—for example, by giving 30, 60, or 90 days' written notice. If the provisions in your lease that govern termination rights are...

Require Certain Terms for All Snow Removal Contracts

December 27, 2011    

Whether you're negotiating your snow removal contract or approving your tenant's, the contract should:

Identify term of agreement and exact services to be performed. This includes which areas will be plowed; the minimum snow accumulation amount before plowing, sanding/...

Cut Four Risks of Renting to Seasonal Pop-Ups

August 14, 2011    

Retail real estate experts predict that more, not fewer, national-brand “pop-up” shops will appear in shopping centers this holiday season than during the past few years. Pop-up shops can be a great way to add pizzazz to your center, but only if you protect yourself from common risks...