Online Alerts

Online Alerts

Make Sure Guaranty Applies to Renewals and Extensions

March 15, 2019    

If you require a tenant to have a guarantor before signing a lease, consider whether you want the guaranty to apply to renewal or extension terms created by future amendments to the lease. If so, make sure your lease and amendments specify that the guaranty will be “...

Should You Agree to Tenant's 'Drop-Dead Delivery Date' for Possession?

March 15, 2019    

When a tenant insists on having its space delivered by a "drop-dead date" it has the potential to expose you to a variety of draconian consequences if the date isn’t met. That's why negotiations over this request are extremely important. If you don't carve out rights for...

CRE Forecast for 2019: Positive and Slower

March 15, 2019    

Private commercial real estate continues to produce steady returns, in line with long-term expectations, according to the recently released UBS US Real Estate Summary. The authors report that CRE investors expect returns to slow in line with historical performance. With rent growth positive and...

Act Promptly After Tenant Misses Rent Payment

February 22, 2019    

It’s critical to take action—by enforcing the lease for a tenant experiencing financial difficulty—as soon as that tenant sends a partial rent payment or misses a rent payment altogether. Regardless of how important the tenant is to your building or center, worry about yourself...

Get Tenant to Reimburse You for Loan-Default Damages

February 22, 2019    

If you defaulted on the mortgage loan for your office building or center because a major tenant didn’t pay its rent, leaving you short of money to make a loan payment, it seems only fair that the delinquent tenant should have to reimburse you for the loan-related damages you had to pay to...

Make Sure Estoppel Certificate Identifies All Documents Comprising Lease

February 22, 2019    

Identify all of the documents comprising the lease in any estoppel certificate you give to a tenant to sign. Alternatively, you can attach a copy of the lease and all of those documents to the estoppel certificate as an exhibit. Then there shouldn't be any gaps when the tenant certifies that...

Get Tenant's Consent to Use Logos When Promoting Center

January 18, 2019    

You can’t use any of the tenant’s trade names, trademarks, logos, and designs in your marketing materials unless you first get the tenant’s consent. Why? Because they are its “intellectual property.” And if the tenant decides to withhold its consent, or you never...

How to Audit Kiosks Routinely and Efficiently

January 18, 2019    

If you grant a license to kiosks and carts to conduct business at your center, make sure that you audit the books and records of a set percentage of those kiosks and carts each year to verify their gross sales. It’s not uncommon for kiosks and carts to submit gross sales statements that...

Know When and How to Post Weather Hazard Warnings

January 18, 2019    

Some office building or mall owners put out “wet floor” signs during rainy or snowy weather to warn customers about slippery conditions that could quickly develop on the floors of the property. In just a few minutes, water can collect, creating a hazard. It’s important to be...

Negotiating Fair and Balanced Radius Clause

December 5, 2018    

Making a profit from tenants at your shopping center or mall depends on many factors—one of which is the key percentage rent arrangement. Percentage rent allows you to collect not only base rent, but also a percentage of the tenant’s gross sales done at the space it leases from you....

Follow Customary Square Footage Calculation Methods

December 5, 2018    

Many commercial properties have more than one level, which will mean that there is at least one set of stairs. You may be wondering if you could include the stairs leading to, say, the dance studio in the square footage, and whether it’s customary, or even legal, to include stairs leading...

Spell Out Tenant’s Obligations After Zoning Change

December 5, 2018    

If you own a mixed-use building that has retail stores on the ground floor and residential units on the floors above, with the ground floor specifically zoned for retail use, be aware of additional lease considerations. Namely, you’ll need to factor in the potential for zoning changes in...