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...
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...
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...
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...
If you give tenants an early termination option, make sure it gives you the right to charge prorated amounts for brokerage commissions and improvement allowances when the tenant exercises an early termination option. In this video excerpted from their recent live presentation, What Could...
It’s among the least appreciated parts of the lease. But while rent, renewal, and other business terms command most of the attention, the so-called force majeure clause takes center stage when disasters occur. It’s at that point that both landlords and tenants recognize the...
Unlike mall food courts, food halls don’t just accommodate traffic; they drive it—and not just in malls but also at mixed-use, office, multifamily, and other non-retail properties. Like the mall food court, the food hall is a mix of retail eateries sharing space within a larger...
You can try, but savvy tenants are demanding that the rental value of an amenity space be excluded from CAM or operating expenses. In this video, excerpted from their live presentation on June 13, 2019, "What Could Possibly Go Wrong? Key Issues to Resolve BEFORE an Office Lease Is...
Boilerplate renewal and amendment agreements typically contain language indicating that the tenant’s obligations under the original lease survive and become obligations under the new arrangement. But they may also include contradictory language saying that the new lease “supersedes...
Before you go into negotiations with a prospective tenant, make sure you have a financial analysis of the proposed lease, so you can tie every added dollar of capital investment per square foot to an amortized x dollars at a certain interest rate over the lease term.
If a prospective tenant isn’t a U.S. business or individual, it may not have sufficient assets within the U.S. to protect you if it eventually defaults. Preferably, the tenant can provide a U.S. guarantor. But...
An electronics store leases 3,000 square feet of shopping center space. But the city won’t let the store operate until wheelchair ramps are installed and the parking lot is re-striped to comply with the Americans with Disabilities Act (ADA). The owner...
