Q & A

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...

Don't Let Minor Oversights Give Tenant Right to Terminate

March 26, 2012    

Q The maintenance team at my shopping center occasionally forgets to make very minor repairs. I'm working with them to make sure that they're more diligent about these things. But in the meantime, a tenant is threatening to stop paying rent,...

Getting Reimbursed for Lease Costs from Tenant that Walks Away

February 27, 2012    

Q A prospective tenant seemed very interested in the space it planned to rent in my office building, but dragged out negotiations for longer than necessary. Although it signed my letter of intent, after my attorney drafted the lease, it announced that...

Does 'Equitable Relief' Excuse Lateness of Tenants' Option to Renew?

December 27, 2011    

Q My lease with a tenant in my shopping center gives it an option to renew for an additional 10-year term. Under the lease, the tenant must exercise its option by sending a letter by certified mail to me by a certain date. When I hadn't heard from...

Determining Correct Lease Term Length

October 23, 2011    

I signed a lease with a tenant for office building space more than 20 years ago. The lease was to expire in 2011, but included an option for the tenant to renew for a five-year period. During the original term, the lease was assigned to a string...

Specifying Items as "Nontrade Fixtures" to Prevent Their Removal

September 27, 2011    

Q My tenant operates a restaurant in the space I rent to it. The lease for the space is nearing its end, and the tenant plans to move out instead of renewing the lease. The tenant is claiming that lighting fixtures and a liquor bar that are built into...

Is Oral Promise for Long-Term Extension Binding on Owner?

August 31, 2011    

Q I signed a short-term lease with a “merger” clause for retail space in my strip mall. The tenant's business was profitable there, and about halfway through the short-term lease, the tenant and I discussed the possibility of extending...

Are Emails Binding in Real Estate Negotiations?

June 20, 2011    

Q During negotiations for an office building lease, I sent a prospective tenant several emails stating the space's square footage. The square footage that I quoted should have been big enough for the tenant's business needs. The tenant signed a...

Are Lease Renewal Options Exempt from Rule Against Perpetuities?

March 20, 2011    

Q I'm thinking of renting space in the first floor of the mixed-use building I own to a successful retailer. I'd like to offer the tenant a long-term lease because I think it will bring substantial foot traffic to the other stores in the...

Clearly Defining “Gross Leasable Area” in Opening Co-Tenancy Provisions

January 25, 2011    

Q Several tenants have already moved into the shopping center I own, although parts of the center are still under construction. When the project is complete, the center will consist of five freestanding buildings. One tenant's lease has an opening...

Keeping Maintenance and Inspection Records to Refute “Constructive Notice” of Defects Claims

December 28, 2010    

Q An employee of a tenant at the office building I own is suing me for negligence, claiming that my property manager's failure to repair a loose step caused the employee to fall down a stairway, injuring his back and neck. The manager had recently...

Relying on Lease Terms to Invalidate Oral Consent to Sublet

November 24, 2010    

A medical clinic tenant in my strip mall renewed its lease only because I orally agreed that it could continue to sublet a portion of its space to a blood lab that serves the clinic's patients. Now, I have a lucrative offer from a franchised...