Plugging Loopholes

Use Indemnity Agreement to Ensure Tenant's Viability

April 26, 2017    

Performing due diligence on a prospective tenant is one way to try to determine whether the tenant is financially viable. But what if you end up leasing to a tenant that proves to be a risk, no matter how careful you thought you were when researching it? One example of a risky tenant is one that...

Protect Warranties from Being Voided by Tenant's Self-Help Effort

April 12, 2017    

A strong tenant forces you to give it a self-help right—that’s the right to step into your shoes to do important repair, maintenance, or replacement work if you fail to do that work. But suppose you have warranties on your roof and other items that restrict who can perform repair,...

Ensure Appropriate Signage Removal by Tenant

January 24, 2017    

When a lease ends, you’ll want the tenant to completely remove any interior and exterior signage it has at its space. But that doesn’t always happen. Sometimes the tenant fails to remove some or all of its signage, leaving the job for you. Other times, it removes the signage but...

Don't Get Left on Hook for Costs of Enforcing Illegal Exclusive

October 21, 2016    

The exclusive right to sell a product or provide a service at a shopping center is invaluable to a tenant. The tenant won’t have any direct competition for profits, which sometimes means that it can set prices that would otherwise have to be lower to lure customers away from other...

Don't Rely on Guarantor's Personal Liability as Extra Assurance

August 29, 2016    

If you’re unsure that a prospective tenant will be able to pay its rent, getting a guaranty can assuage your fears and protect you from not being able to collect what the tenant owes. While a tenant might be able to produce a third party who’s willing to act as a guarantor on the...

Don't Let Tenant Ambush You with Default Claims

July 25, 2016    

You might think that if you sue a tenant that has stopped paying rent and abandoned or been evicted from its space, it’s only fair that the tenant pays you what it owes in damages. If you’re surprised to find out that some tenants end up paying only a fraction or even none of the...

Set Criteria When Giving Relocation Space to Tenant

April 18, 2016    

Many retail space owners, and especially mall owners, give themselves a relocation right. That is, the right to relocate the tenant to a different space in the center or mall under certain circumstances. Negotiating a relocation right can be tricky—if you don’t draft this provision...

Don't Miss Opportunity to Collect on Slotting Fees

March 31, 2016    

Many people don’t know that retailers—namely drug stores, grocery stores, discount department stores, home improvement stores, music stores, and book stores—have special deals with manufacturers, vendors, or suppliers to promote certain products. And that might not mean much to...

Collect Lost Rent If Tenant Leaves Space in Unrentable Shape

January 28, 2016    

Are you fully protected if your tenant moves out at the end of its lease and leaves the space in such terrible shape that it’s unrentable right away? Your lease probably requires the tenant to pay for any costs and repairs that may be necessary, but that may not be effective to cover ...

Spell Out Your Right to Shut Down Electricity

November 19, 2015    

Shutting down the electricity in a tenant’s space may become necessary at some point, either because of circumstances in the center or building, such as repairs or an upgrade to the electrical system, circumstances out of your control, such as an order from the utility company, or an...

Use Letter of Credit as Security for Tenant's Construction

October 26, 2015    

When a tenant performs alterations in its space, there’s always the risk that they won’t be performed properly or that one or more mechanic’s liens will be filed against your property. Both of these issues can be costly and have long-lasting ramifications. Traditionally, many...

Make Tenant Adapt Insurance Coverage to Changing Circumstances

August 28, 2015    

Sadly, public violence has escalated in the past few years, with attacks in workplaces, entertainment venues, and malls. Regardless of the security measures you take to prevent or deal with violent attacks occurring on your property, some things will always be out of your control. From time to...

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