Q & A

Making Tenant Pay Fair Share of After-Hours Lighting

April 24, 2013    

Q: My shopping center leases let me pass through the cost of lighting the parking lot during center hours. But some of my tenants—such as a movie theater and a restaurant—commonly stay open after center hours. I want to charge...

Negotiating Enforceable Indemnification Provision

February 25, 2013    

Q: I’m negotiating a lease with a prospective tenant for my shopping center. I’ve been sued several times in the past few years for personal injuries sustained at the center. I’d like to avoid any further lawsuits. Can I...

Determining Scope of Arbitration Clause

January 23, 2013    

Q: I rented space to a tenant under a lease that contained an arbitration provision. The provision specified that all items except for those pertaining to rent—specifically, nonpayment of rent—must be arbitrated. The tenant...

Ensure Right to Draw on Letter of Credit

November 19, 2012    

Q: I’ve allowed relatively strong tenants in my shopping center to give me a letter of credit for their security deposits. Now, a small tenant is asking for the same arrangement. The products the tenant sells would be important for...

Tightening Gross Sales Exclusion

October 19, 2012    

Q: The leases I signed with several tenants at my shopping center didn’t mention online sales in the gross sales exclusion provisions in the lease. I recently started mentioning online sales in my leases, but I think that other, new...

Determining Whether Dispute Is Resolved by Court or Arbitration

September 28, 2012    

Q: I’d like to make changes to the appearance of my shopping center, but under the lease with one of my tenants, the tenant has to give its consent to the changes before I can make them. I believe the changes won’t affect the...

Protecting Against Liability for Personal Injury, Property Damage

August 30, 2012    

Q: If my tenant causes damage to the space it rents from me, or is responsible for accidents or injuries that happen there, it’s only fair that the tenant should pay for them. Is there a way to make the tenant pay for damage it causes...

Deciding Restoration Responsibility for Alterations

July 26, 2012    

Q: Should you negotiate for your tenant to be responsible for removing some or all of the alterations it made during the lease?

Negotiating Tenant’s Lease ‘Exit Strategy’

June 26, 2012    

Q I own a shopping center in a neighborhood that’s undergoing “urban gentrification,” but still has some rough areas where petty crimes take place. The lower rent and extra space I can offer to tenants is attractive, but...

Apportioning Costs for Tenant’s Relocation in Current Center

June 26, 2012    

Q A current tenant is negotiating a move to another space in the same retail center I own. Which relocation costs are fair for me to pay, and what costs should I expect the tenant to cover?


Retaking Space After Tenant’s Lease Default

June 26, 2012    

Q To correct a building code violation, I took over the storage area in office building space that’s currently rented by a retail tenant. The tenant breached the lease by not complying with the building code, which it was required to do...

Is 'Stipulation of Settlement' Agreement Mutually Beneficial?

May 3, 2012    

Q A tenant that rents space in one of my office buildings has been struggling. It didn't pay rent for several months. I sued the tenant for nonpayment of base rent and additional rent. We signed a “stipulation of settlement” in which it...