Online Alerts

Keep Guarantors on the Hook for Attorney’s Fees

September 8, 2021    

Guaranty agreements may cap how much the guarantor has to pay if the tenant defaults. For example, the agreement may say that $100,000 is the most the landlord can collect from the guarantor. If you include dollar caps in your own lease guaranties, just be sure that they exclude attorney’s...

Specify in Lease that 'Attorney' Can Send Notices

August 3, 2021    

It's important to make your notice to a tenant valid if your attorney sends it. If a tenant violates your lease, you're probably required to notify the tenant in writing that if it doesn't cure—that is, correct—the violation by a set deadline, you can take action against...

Don't Let Today's Rent Breaks Limit Tomorrow's Rent Increases

July 13, 2021    

Granting rent concessions and abatements (which we’ll refer to collectively as “abatements”) has become standard operating procedure in these troubled times. But before you engage in the practice, check your lease for a loophole that can limit how much of a rent increase you...

Can Tenant Waive Landlord’s Duty to Mitigate Damages?

May 28, 2021    

A restaurant tenant isn’t happy about what it deems to be the landlord’s inadequate efforts to market the mall and abandons the property. Instead of immediately seeking a replacement, the landlord lets the space remain vacant and sues the tenant for rent.

We didn’t...

Don't Use 'Supervise' or 'Administer' When Describing Management Fees

May 6, 2021    

When describing management fees that you'll pass through as a CAM cost or an operating expense, don't depend on synonyms for “manage” or “management” to convey your meaning. If you use only the words “supervise and administer” or “supervision and...

Did Tenant Waive Landlord's Duty to Mitigate Damages?

May 4, 2021    

A restaurant tenant isn’t happy about what it deems to be the landlord’s inadequate efforts to market the mall and abandons the property. Instead of immediately seeking a replacement, the landlord lets the space remain vacant and sues the tenant for rent.

We didn’t...

Is Broker Entitled to Commissions on Renewals that Occur After a Client Sells the Property?

April 6, 2021    

SITUATION

The owner of commercial property comprised of two buildings with an adjoining lobby hires a brokerage firm to find a tenant for the space. The broker lines up a tenant. The lease runs five years and requires the “Owner” to pay the broker’s commission for the...

Court: Pandemic Isn't a 'Casualty' Event

April 6, 2021    

What Happened: Another retail tenant has failed in its bid to use COVID-19 as an excuse for not paying rent. The tenant in this case was a New York City outlet of national retail chain The Gap, which claimed, among other things, that the pandemic and its resulting shutdowns...

Should You Let Nonprofits Use Vacant Space Temporarily?

February 22, 2021    

Q: Is there any benefit to letting a local charitable or nonprofit organization temporarily use vacant space in a center to collect donations, sell or distribute merchandise, or give out information about their programs?

Eviction Moratorium Doesn't Get Guarantor Off the Hook

February 22, 2021    

What Happened: Like so many tenants affected by COVID-19, Saks Fifth Avenue stopped paying rent at its flagship New York City store. The landlord sued Saks’ parent company, the lease guarantor, for $2.7 million in unpaid rent. If these were normal times, we’d be...

Don't Let Tenant Merger Escape Assignment Clause

February 22, 2021    

Renting office space to a corporate tenant requires some special handling of the typical assignment clause in a lease. Usually, an assignment clause requires the owner’s consent before the tenant may assign the lease. A corporate tenant may try to get around this by simply transferring...

The Impact of Remote Working on Office Leasing

January 7, 2021    

With most office workers able to work from home, the pandemic hasn’t hit office tenants—and thus their landlords—as hard as it’s hit tenants in the retail, restaurant, and hospitality sectors. But with employees productive at home, office tenants are reconsidering their...