Feature
November 19, 2015
Commercial tenants typically want the right to “go dark”—that is, stop operating while continuing to pay rent—if their businesses aren’t generating enough revenue. “Going dark” can save tenants the cost of stocking and staffing the space they rent. But if...
Plugging Loopholes
November 19, 2015
Shutting down the electricity in a tenant’s space may become necessary at some point, either because of circumstances in the center or building, such as repairs or an upgrade to the electrical system, circumstances out of your control, such as an order from the utility company, or an...
Owner Wins
November 19, 2015
Facts: A restaurant tenant stopped paying rent for its commercial space. It claimed that a nearby state construction project had substantially decreased its profits because the construction blocked the entrance’s visibility and forced customers to take an indirect route to reach the...
Owner Wins
November 19, 2015
Facts: A tenant signed a 13-year lease with the owners of an office building. Upon moving into the office space the tenant failed to secure a $75,000 security deposit bond, which was required under the lease. The tenant later moved out without notice or explanation, stopped paying rent, and...
Owner Loses
November 19, 2015
Facts: A national department store tenant withheld its rent and engaged in self-help remedies after the owner of the shopping center repeatedly failed to repair problems with the building, including leaking plumbing and a dilapidated appearance both inside and outside the property. The tenant...
Feature
October 26, 2015
When you lease space to a tenant, it’s impossible to predict whether you’ll experience the unpleasant repercussions of accidents, injuries, or criminal acts that can be attributed to the tenant. These events can be costly, but as with most other risks involved in leasing space, you can...
Plugging Loopholes
October 26, 2015
When a tenant performs alterations in its space, there’s always the risk that they won’t be performed properly or that one or more mechanic’s liens will be filed against your property. Both of these issues can be costly and have long-lasting ramifications. Traditionally, many...
Q & A
October 26, 2015
Q: A prospective tenant for my shopping center wants its cotenancy clause to provide that a specific well-known retailer that takes up a large space in the center must be replaced with a “major tenant” if the retailer goes out of business. I assume this means a tenant that’s large...
Owner Wins
October 26, 2015
Facts: A jewelry vendor signed a license agreement to sell its inventory from a kiosk in a mall. At the end of the day, the tenant would store its inventory in a safe contained within its space. The space was then closed off and the mall itself was not accessible to the public overnight. Thieves...
Owner Wins
October 26, 2015
Facts: A tenant rented space to operate its café and lounge in an Art Deco-style entertainment complex that included a theater and flashing signage. According to the tenant, the exterior of the building and the unique signage attracted customers to its location. Under the lease, the owner was...
