Owner Loses

Lease Lets Tenant Off Hook for Causing Careless Property Damage

March 28, 2019    
What Happened: A retail tenant in Michigan moved out of the space in the middle of the year even though the lease didn’t expire until Dec. 31. It forgot to make provisions for regulating the heat when the weather turned cold, and a water pipe froze in late December.
Owner Wins

Tenant Evicted for Nonpayment Can't Blame Landlord for Wrecking His Business

March 28, 2019    
What Happened: A tenant who hasn’t paid rent for two straight months is aggravation enough for any landlord. But when the tenant who skips rent has just borrowed $6 million from you to make improvements to its manufacturing facility, the stress level is that much worse.
Feature

Protect Interests When Dealing with Financially Troubled Tenant

February 12, 2019    
While retail and office building owners field defaults of many kinds from tenants that fail to follow their lease terms, nonpayment of rent is the most common breach of a tenant’s lease. It signals bigger problems for you than just your bottom line being affected in the months that you don...
Dos & Don'ts

Don't Forget Beneficial Transportation in Operating Expenses

February 12, 2019    
If you’re the owner of a large retail property or several properties, you might decide to capitalize on the convenience factor and provide transportation for shoppers. While maximizing sales benefits you in the form of higher percentage rent and maintaining cotenancy obligations by ensuring...
Dos & Don'ts

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

February 12, 2019    
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 using...
Dos & Don'ts

Require Tenant to Offer Same Deal as Third Party for ROFR

February 12, 2019    
Some owners offer a tenant the right of first refusal (ROFR) to buy a building, should they decide to sell the property. If you decide to do this, make sure that you don’t get burned by the current tenant’s lower offer than a third party. When negotiating a lease with a tenant you...
Dos & Don'ts

Negotiate Hazardous Materials Cleanup with Medical Tenant

February 12, 2019    
Medical office tenants may pose environmental and safety risks if they generate hazardous materials and medical waste. Contamination of space can be a nightmare for you, but you can ameliorate this by requiring the tenant to return the space in the same condition that it was in when the tenant...
Q & A

Determining Liability for Third-Party Damage

February 12, 2019    
   Q:    I recently hired an independent contractor to work at my shopping center. Now, a tenant claims that its business has been damaged by the worker.
Owner Loses

Guaranty Must Be 'Continuing' to Create Obligation Past Initial Terms

February 12, 2019    
Facts: A retail tenant signed a lease with one three-year renewal option. The landlord required a guaranty in order to move forward with the deal. After the initial lease term and renewal were complete, an amendment extended the option to renew for five years and increased the amount of rent. There...
In the News

Manhattan Takes Second Place to London in CRE Investment

February 12, 2019    
Despite global financial uncertainty sparked by Brexit—that is, the impending withdrawal of the United Kingdom from the European Union—London retained its title as the world’s top destination for investment in commercial real estate in 2018, according to a new report by global...