Owner Wins
September 26, 2016
Facts: An office building tenant was in default of its lease and subsequently filed for bankruptcy. The lease had been guaranteed. The guarantor hadn’t filed for bankruptcy. When the building’s owner informed the guarantor that it would have to cover the back rent and other lease...
Feature
August 29, 2016
In a perfect commercial real estate world, shopping center and retail leases wouldn’t be subject to variables that could negatively affect your profitability. In reality, inflation—which is impossible to predict with complete certainty—can affect your bottom line unless you and...
Plugging Loopholes
August 29, 2016
If you’re unsure that a prospective tenant will be able to pay its rent, getting a guaranty can assuage your fears and protect you from not being able to collect what the tenant owes. While a tenant might be able to produce a third party who’s willing to act as a guarantor on the tenant...
Q & A
August 29, 2016
Q: I recently bought a building comprised of several commercial condo spaces. A restaurant tenant has expressed interest in one of the spaces, but I’m apprehensive. The space is subject to the governing documents of an association, and restaurant tenants have more hoops to jump through, such...
Dos & Don'ts
August 29, 2016
While many commercial leases are for several-year terms, it might behoove you to agree to a month-to-month tenancy with a tenant. Month-to-month tenants can be part of a strategic plan for your property, especially if you have spaces that you’d like to collect rent for in the short term while...
Dos & Don'ts
August 29, 2016
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...
Owner Loses
August 29, 2016
Facts: A grocery store customer who slipped and fell on ice in the strip mall’s parking lot sued the grocery store tenant, the center’s owner, and the snow-removal contractor and subcontractor for her injuries. She asserted that they all had a duty of care to keep the parking lot free...
Feature
August 10, 2016
By Ellen Siegel, Esq.
Special considerations need to be addressed when a prospective tenant is not a U.S. business or individual. These considerations are geared to ensuring that the tenant and the guarantor, if any, have sufficient assets within the U.S., and that all jurisdictional and choice-of-...
Resolving Disputes
August 10, 2016
Two of the most oft-cited reasons for seeking alternative dispute resolution (ADR)—specifically arbitration—as an alternative to litigation are the potential savings in time and costs to the parties, including the greater likelihood of final resolution due to the limited bases upon...
Drafting Tips
August 10, 2016
CRE owners should be aware of situations in which a license agreement may prove to be more beneficial than a leasehold interest. The key factors that distinguish a license from a lease are the ability to revoke the licensees’ use at will, and the degree of control that the property owner...
