Drafting Tips

Get Right to Increase Security Deposit After Key Events

January 17, 2019    
Security deposits are essential for commercial real estate owners to protect their interests when leasing space to tenants. That’s because a security deposit can be used in a number of ways to minimize the effect when a tenant doesn’t meet its lease obligations. But a security deposit...
Negotiating Tips

Negotiate Use of One Experienced Arbitrator for Extension Option Disputes

January 17, 2019    
“Alternative dispute resolution” (ADR) methods, including arbitration, are often used by commercial real estate owners to resolve differences with tenants out of court. Arbitration is a great solution for parties who are in disagreement about a single, clear-cut issue. Common, but...
Owner Loses

Landlord's Insurer Can't Seek Subrogation from Tenant

January 17, 2019    
 Facts: A landlord and a tenant signed a lease that provided that the landlord would insure the building and the tenant would insure its personal property inside the building. When the property was later damaged by a fire, the landlord’s insurance covered the loss. The landlord’s...
Feature

Negotiate Eight Conditions for Sublease Without Consent

December 12, 2018    
Subleases can be more complicated than they seem. It’s not just a matter of allowing a tenant to give its space either temporarily or until the end of its lease to a replacement tenant. To protect themselves, owners should carefully draft sublease provisions.
Q & A

Paying for Tenant's Improvements Without Giving Express Consent

December 12, 2018    
  Q:   I signed a lease with a tenant for space that the tenant is responsible for making necessary improvements to.
In the News

CRE Brokers Have High Hopes for Dispensary Deals

December 12, 2018    
A new survey of commercial real estate brokers who have done lease deals for space for marijuana businesses reveals that—despite the difficulty of negotiating such leases—they would try again. The survey comes after voters have approved the legalization of marijuana in three more states...
Owner Loses

Tenant's Yellowstone Injunction Appropriate Pending Outcome of Late Rent Claims

December 12, 2018    
Facts: A tenant rented space for its office on two floors of a building. When it attempted to exercise its option to renew its lease for an additional five-year term, the landlord offered to buy out the lease, but the tenant rejected the offer. A few weeks later, the tenant received a termination...
Feature

Use Radius Clause to Protect Your Percentage Rent from Tenant

November 14, 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. But...
Q & A

Can Tenant Exercise Purchase Option Despite Missing Deadline?

November 14, 2018    
Q:  A tenant negotiated an option to purchase the space it will be leasing from me at one of my free-standing properties, after it has operated there for a certain number of years. The notice requirements for exercising the purchase option are very clear; however, I’m concerned that if...
Owner Loses

Jury Trial Needed to Determine Maintenance Responsibility

November 14, 2018    
Facts: A jewelry store tenant that leased space in a shopping center complained repeatedly about a sewage smell and mold problem in the store. It claimed that it was losing business. Its complaints were documented in multiple emails over the course of several months. For its part, the landlord had...