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...
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...
Standard commercial net leases require the tenants to pay a pro-rata share of property taxes on an office building or shopping center based on how much of the space each occupies. As a result, when improvements cause the property’s tax assessment to go up, the big tenants pay the lion...
If a tenant moves out and leaves behind fixtures, furniture, and equipment (FF&E), you may decide to leave them in the space because they make it more attractive to prospective tenants. But that can lead to trouble once a new tenant moves in. The new tenant may think that it owns the FF&...
It’s common for retail tenants to negotiate a kick-out right—that is, the right to terminate the lease in the first few years if its gross sales fall below or don’t reach a certain threshold. This right is especially important for tenants that are considering expanding into a...
You may have to give in if a strong tenant demands the lease right to assign or sublet to its affiliate—that is, a company the tenant controls or that controls the tenant—without your consent. The tenant probably will argue that an assignment or a sublet to its affiliate is no big...
Some tenants that turn out not to be able to afford the rent for their space are upfront with their owners and try to deal with the situation the best way they can. Unfortunately, you may someday be faced with a tenant that must move out of its space before the end of its lease, but tries to get...
It’s typical for commercial leases to allow tenants to prorate rent if certain events, such as destruction of the tenant’s space, occur. But when you agreed to rent proration, you probably didn’t intend to let a bankrupt tenant that decides to reject its lease prorate its last...
If you haven’t negotiated a favorable holdover clause in your lease with a tenant, you may end up getting stuck with low rent and high costs if it won’t move out of the space when its lease term is over. That’s because to get rid of a tenant that doesn’t move out when its...
In the excitement and administrative hustle and bustle of redeveloping their centers, some owners discover they’ve overlooked one very important aspect of the redevelopment—namely, making sure that the overall look of the updated center isn’t interfered with by tenants. To...
Responsibility for mold-related damage in commercial and residential properties has become a hot-button issue in the past decade, as major storms like Hurricane Sandy have increased the potential for flooding and subsequent mold growth, and as tenants have become more aware of environmental...
Competing with other nearby centers to draw in customers can be tough. You’re in a much better position if you have high-profile tenants that make your center a destination for customers looking for these particular stores. But no matter what type of center you own, you’ll want to...
