Winners & Losers

Does Tenant Relocation End Guarantor's Lease Obligations?

July 27, 2023    

A consent-for-modification clause will stretch only so far.


Can You Hold a Parent Company Liable for the Lease Obligations of Its Corporate Subsidiary?

May 25, 2023    

When tenants go out of business landlords pay the price. One way to cushion the financial blow is to go after the tenant’s parent corporation for the unpaid rents and other revenues owed under the lease. But without an express lease guaranty, holding a corporation liable for the debts of...

Can Contractors Enforce Liens Against Landlords of Nonpaying Tenants?

January 26, 2022    

Letting tenants hire contractors to perform improvements on the property they lease from you can be risky business. One of the principal dangers is that if the tenant fails to pay its contractors, they may seek to collect the debt from you—by placing a mechanic’s or construction lien...

Can Tenant Require Landlord to Indemnify It for Negligence Committed in the Common Areas?

May 19, 2021    

When it comes to liability for accidents and injuries to third parties on shopping center property, the lines are pretty well established. Absent lease language to the contrary:

Does COVID-19 Closure Trigger Force Majeure Rent Relief for a Retail Tenant?

September 18, 2020    

Historically, boilerplate force majeure clauses have excused parties from performing lease obligations made impossible by unforeseen and unpreventable events, including government actions that make performance impossible. During the pandemic, retail and restaurant tenants across the country...

Can a Holdover Tenant Claim Constructive Eviction?

January 23, 2020    

The tenant’s right of quiet enjoyment lasts for as long as the lease remains in effect. If the landlord does something to interfere with that right, the tenant is entitled to vacate and stop paying rent on the grounds of constructive eviction. But what happens when the original lease...

When Does Tenant Violation = Material Breach Justifying Lease Termination?

October 28, 2019    

Misconception: You can evict a tenant for committing a lease violation.

Truth: You can evict a tenant for committing a “material” lease violation.

Does Defective Notice Undermine an Otherwise Valid Eviction Case?

June 24, 2019    

When you set out to evict a tenant in default, delivering the actual notice may seem like a minor affair. But failing to follow the exact notice methods and deadlines set out in the lease can undermine your eviction suit. This is true even if the notice you do provide is loud and clear.

Can Owner Use 'Escalation' Clause to Make Tenant Pay Property Tax Increase?

April 27, 2015    

Standard commercial net leases require tenants to pay not just rent but a proportionate share of the owner’s property taxes. Of course, property taxes are apt to fluctuate over time. Accordingly, owners typically include an “escalation” or “adjustment” clause in the...

Is a Radius Clause Reasonable or an Illegal Restraint of Trade?

January 16, 2015    

Many shopping center leases include “radius clauses” banning tenants from opening similar businesses within a certain radius of the leased location. The idea is to prevent tenants from establishing essentially identical establishments to siphon off revenues and thereby minimize gross...

Is Failing to Curb Noisy Tenants Grounds for Constructive Eviction?

December 12, 2014    

There are two ways to evict a tenant: (1) “Actual eviction,” or going to court to get an eviction order, is the proper way; and (2) “constructive eviction,” or doing something so egregious to interfere with the tenant’s business that it forces the tenant to leave,...

Does Owner Waive Eviction Rights by Accepting Late Rent?

October 23, 2014    

An owner’s right to evict a tenant for not paying rent on time is a staple of any commercial lease. But like any other lease right, it can be waived. One way to do that is by formal, written agreement with the tenant. But more often than not, waiver of the right to timely rent is the...