Negotiate Six Specifications in 'Assignment of Sublet Rents' Clause

April 26, 2017    

In theory, a sublet seems easy: When you let a tenant sublet its space, the subtenant pays the tenant its rent due under the sublease, and the tenant pays you its rent or percentage rent due under the lease. While that’s the way sublet scenarios are designed and expected to work, you can...

Strengthen Landlord's Self-Help Right to Protect Space, Avoid Wasting Time in Court

April 12, 2017    

A tenant’s lease violation is never good news for commercial real estate owners, but each type of violation has different consequences—ranging from annoying to disastrous. If your lease doesn’t give you a “self-help” right, you might find yourself facing the...

Negotiate Circumstances for Tenant to Buy Its Leased Space

March 15, 2017    

It’s an undertaking for any tenant to scout out prospective commercial space, negotiate a lease, and then deal with the logistics and expense of moving into that space. So, after going through all of the effort to get established at a property, it’s not unusual for a big tenant that...

Explore Tax Advantages of Triple Net Leasing for Your Property

February 22, 2017    

If you own commercial property and are contemplating branching out and acquiring more properties, you might not know where to start. A good jumping off point is understanding what type of leasing opportunities are available—and their interplay with the commercial real estate market now....

Include 10 Items in 'Event of Default' Definition

January 24, 2017    

Every lease gives an owner certain remedies, such as eviction or the collection of damages, that the owner can use if something the tenant does or fails to do fits the lease’s definition of an “event of default.” But what if your lease doesn’t clearly define what acts or...

Require Tenant to Meet 23 Conditions Before You Agree to Recognize Sublease

December 16, 2016    

The ability to turn a profit by selling products online has in recent years drastically reduced some business’s need for physical space. But commercial real estate leases tend to have terms that span several years, and sometimes decades, so a tenant could’ve signed a 20-year lease at...

How to Choose a Lease Commencement Date

November 22, 2016    

Setting a workable commencement date for a lease to begin is one of the most important aspects of lease negotiations. But it often isn’t thought through by either owners or tenants. As with many overlooked parts of a lease deal, it takes a back seat to big ticket items like cotenancy...

How to Ensure Tenants Will Pay Your Entire Insurance Cost

October 21, 2016    

Your shopping center leases probably require each tenant to pay its share of the center’s fire insurance, liability insurance, and other kinds of insurance. However, if you want to pass through your insurance costs to your tenants as a separate component of common area maintenance (CAM)...

Follow Two-Step Lease Enforcement Plan for Imminent Eviction

September 26, 2016    

Nonpayment of rent is the most common breach of a tenant’s lease—and can be a major signal that trouble is on the horizon. That trouble could come in many forms: A tenant becomes bankrupt or has financial issues, it withholds its rent because of a perceived problem that you’ll...

Ensure Favorable Rent Escalation for Life of Lease

August 29, 2016    

In a perfect commercial real estate world, shopping center and retail leases wouldn’t be subject to variables that could negatively affect your profitability. In reality, inflation—which is impossible to predict with complete certainty—can affect your bottom line unless you and...

Leasing to Non-U.S. Tenants: Protecting Against Default and Ensuring Enforcement

August 10, 2016    

By Ellen Siegel, Esq.

Special considerations need to be addressed when a prospective tenant is not a U.S. business or individual. These considerations are geared to ensuring that the tenant and the guarantor, if any, have sufficient assets within the U.S., and that all...

Modify Standard Form Lease to Fit Commercial Condo Tenant

July 25, 2016    

While the terms of commercial leases will vary to some degree depending on the owners, tenants, and types of businesses involved, most of the same items are on the agenda for negotiations. Renewal or expansion options, common area maintenance exclusions, use clauses, and assignment and...

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