Traps to Avoid

Don't Agree to "Keep" As-Is Space in "Good" Condition

August 27, 2024    

It’s neither contradictory nor uncommon to lease space to a tenant in “as-is” condition while also promising to maintain some or all of that space, such as the roof or parking lot, until the transfer is complete. You just need to be careful about how you word the obligation....

Don't Fail to Specify Renewal Rent Amount or Process

December 5, 2023    

Not stating the specifics is likely to lead to two results, both of them negative.

 

 

Don't Fail to Specify Renewal Rent Amount or Process

October 24, 2023    

Not stating the specifics is likely to lead to two results, both of them negative.

 

 

Don't Let Your Marketing Materials Become Exhibit A in Tenant's Fraud Lawsuit

July 27, 2023    

We’ll give you three ways to protect yourself.

 

Marketing brochures and communications that describe your property, its amenities, and tenant mix are instrumental to attracting new tenants. But they can also get you into trouble if the information they contain is...

Ensure New Tenant’s Exclusive Doesn’t Conflict with Old Tenants’ Sales Rights

February 23, 2023    

Offering an exclusive can help you lure new tenants. But offering the wrong kind of exclusive can cost you a renewal. SNAFUs are apt to occur when you use a common form of exclusive stating that the tenant is the only tenant in the shopping center that’s allowed to sell a particular...

A Signed Letter of Intent Isn't a Binding Lease

January 27, 2023    

A signed letter of intent (LOI) is often the preliminary step to a commercial lease. The LOI typically requires the sides to keep the deal confidential while outlining the crucial terms of the lease they both ultimately intend to sign. However, while it may feel like a commitment, the LOI is...

Don't Agree to Keep CAM Costs “Competitively” Priced

January 3, 2023    

Tenants that must pay common area maintenance (CAM) or operating costs typically want assurances that landlords will keep those expenses reasonable and in line with the average costs that owners of other shopping centers or office buildings in the area pay. And if the tenant has bargaining clout...

Lease Debt Liability Clauses May Not Bind Government Tenants

December 22, 2022    

Finding a financially stable tenant that you know won’t go out of business and will have the financial resources to pay its rent every month no matter how long the lease lasts is every commercial landlord’s dream, especially in these tough economic times. That’s why it might be...

Don't Agree to Keep CAM/Operating Expense Costs “Competitively” Priced

November 29, 2022    

Tenants that must pay common area maintenance (CAM) or operating costs typically want assurances that landlords will keep those expenses reasonable and in line with the average costs that owners of other shopping centers or office buildings in the area pay. And if the tenant has bargaining clout...

"No Representations" Clause Doesn't Bar All Fraud Claims

October 24, 2022    

It’s a clause that almost every commercial lease contains, yet rarely gets even 10 seconds of attention. The clause says something to the effect that “Landlord has made no representations to Tenant other than those contained in the terms expressly stated in this Lease.” The...

Must You Use a CPA to Calculate Lease Costs?

July 5, 2022    

Certified public accountants (CPAs) don’t work for free. And if you know math, you may not need one to calculate your own real estate tax, cost-of-living increases, operating expenses, and other lease costs you pass along to tenants. However, the money you save on CPA fees by doing your...

Calculating Lease Costs Without a CPA

May 23, 2022    

Certified public accountants (CPAs) don’t work for free. And if you know math, you may not need one to calculate your own real estate tax, cost-of-living increases, operating expenses, and other lease costs you pass along to tenants. However, the money you save on CPA fees by doing your...