Owner Wins
February 23, 2016
Facts: Under its agreement with a previous owner of the shopping center where it rented space, a tenant had been permitted to use its rent payments to “pay down” a wraparound mortgage that arose from some bankruptcy claims. After the center was purchased, the tenant was required to pay...
Feature
January 28, 2016
If you signed a lease with an operating cotenancy clause, you may feel that you’re under pressure to keep the status quo at your center or pay the price by allowing the tenant with a cotenancy right to pay reduced rent or take advantage of other concessions if one or more other tenants close...
Plugging Loopholes
January 28, 2016
Are you fully protected if your tenant moves out at the end of its lease and leaves the space in such terrible shape that it’s unrentable right away? Your lease probably requires the tenant to pay for any costs and repairs that may be necessary, but that may not be effective to cover all of...
Q & A
January 28, 2016
Q: A jury ruled in favor of a tenant that sued me for breaching its lease for space at my shopping center. The tenant argued that I had breached the lease by accepting late rent payments a few times but telling the tenant that it was in default for late rent payments it made a few months later, and...
Owner Loses
January 28, 2016
Facts: A national pet product retailer received a notice of default and termination from the owner of the space it rented. The owner alleged that the tenant had failed to perform its maintenance obligations under the lease, most notably, failing to fix a large crack in a wall, which entitled the...
Owner Loses
January 28, 2016
Facts: A tenant negotiated a lease that granted it an ongoing right to terminate its obligations in the event of a sale or relocation of its business. Specifically, the lease stated that, “provided the Tenant is selling or moving the business, Tenant shall have the ongoing right to terminate...
Feature
December 21, 2015
Many office building and shopping center owners focus on the terms of the lease itself, forgetting that pre-lease agreements leading up to the start of the tenant’s term can make or break the deal from the start. But what about a scenario where the lease term never actually starts? If a lease...
Drafting Tips
December 21, 2015
Many tenants need major improvements made in their space in order to accommodate their businesses. Franchisee tenants need space that looks a certain way, retail clothing stores need shelving, and restaurants might need built-in seating. This will probably be spelled out in the tenant improvements...
Q & A
December 21, 2015
Q: I signed a lease with a tenant who backed out of the deal shortly before moving into the space. The lease provided for a substantial tenant improvement allowance (TIA) because the building is new and needs not just the tenant’s requested improvements to its particular space, but also...
Owner Loses
December 21, 2015
Facts: An owner and tenant signed a lease for office space, whereby each party would perform renovations to the space to convert it from industrial to office space. The owner was to perform its renovations first. After the owner missed the deadline to turn the space over to the tenant with the...
