Online Alerts

Minimize Liability Risks from Shooting Sprees & Terrorism

February 6, 2020    

More than 300 mass shootings have taken place in the U.S. since 2000. More often than not, these incidents take place on commercial property and lead to legal action against the landlords and tenants at the site.

Are You Liable for Personal Injury in Tenant's Space?

February 6, 2020    

SITUATION: A tenant leases property to operate a car wash. The lease requires the tenant to keep the property in good repair. The actual language:

The Tenant shall keep the Demised premises in good condition and repair . . . the tenant, at its...

Don't Accept Ambiguous Definition of 'Merchandise' in Use Clause

February 5, 2020    

An increasing number of retailers sell both new and “vintage” or consigned merchandise. But if you want a retail tenant’s space to be used solely or primarily for sales of new merchandise, then you’ll need to say this in the lease’s use clause. And be aware that...

Require Foreign Tenant to Maintain Adequate Assets in U.S.

January 7, 2020    

Leasing to a non-U.S. business raises special legal considerations. For example, you may be unable to enforce lease payment obligations and court judgments against tenants who keep their assets outside the U.S.

So, before signing a lease with a foreign tenant, confirm that the tenant...

Lawscape: Which States Allow for Lien Waivers?

January 7, 2020    

Giving tenants construction allowances to make improvements to the property exposes you to legal risks. If the tenant doesn’t pay its contractors, they may try to collect the debt from you, which can include placing a mechanic’s lien on the property. Requiring the tenant to get...

Don't Charge Tenants for Electricity 'Consumed'

January 7, 2020    

If your lease requires tenants to pay you their share of the property/facility’s electric bill, don’t say they have to pay for the electricity they “consume.” That’s because the bills you receive from the electric company may include elements not related to...

Don't Assume Rent Obligations Automatically Accelerate Upon Default

December 12, 2019    

After a Kentucky shopping center tenant stopped paying rent and abandoned the premises, the landlord retook possession and billed the tenant for the roughly $3.211 million in unpaid rent remaining through the end of the lease. The tenant admitted to being in default but contested the landlord...

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

November 6, 2019    

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...

Avoiding Liability When One Tenant Violates Another's Exclusive

November 6, 2019    

Q: Two tenants at the shopping center I own are currently in a dispute about who has the right to sell a certain product. A toy store tenant signed a lease with an exclusive use clause that gives it the right to be the only tenant in the...

Tailor Lease for Unique Space

November 6, 2019    

If you own an unusual building—one with “character,” a unique layout, or historic elements—you’ll need to find tenants that appreciate quirks. These types of properties can be wildly successful, but you’ll need to take into account marketing and leasing issues...

Set Conditions for Financing Tenant Improvements

October 7, 2019    

Offering tenant improvement allowances (TIAs) is a great way to attract and retain small and new businesses that can’t afford the renovations they need to open shop. But it can also backfire if the tenant defaults before moving in or generating the revenues necessary to pay you back. TIAs...

Get Control Over Tenant's Right to Amenities

October 7, 2019    

Q: Most tenants at my property require certain amenities and they won’t sign leases for space there if they don’t get them. But I’ve heard of circumstances under which office building and retail property owners have had to...