Q & A
July 26, 2013
Q: I’m about to start negotiating with a prospective tenant for office space that will require a substantial buildout by me before the tenant moves in. To protect itself, the tenant has asked to negotiate a detailed, comprehensive work letter. I understand that some owners wait until the rest...
Online Alerts
July 26, 2013
Foreign investors have found a stable commercial real estate market to pursue: Downtown Washington, D.C., office buildings. Washington’s commercial real estate has bounced back from the recession more quickly than other metropolitan areas of the country, thanks to stimulus spending measures...
Owner Loses
July 26, 2013
Facts: A mall owner signed a 20-year ground lease with a tenant for space in which to operate a movie theater. The lease included several clauses concerning the allocation of real estate taxes between the owner and tenant, including who was responsible for having the premises assessed for taxes and...
Owner Loses
July 26, 2013
Facts: A tenant that sold electronic equipment leased space in a shopping center in 1973. A significant provision of the lease—the excessive vacancies clause—provided for abatement of rent in the event that the occupancy of the shopping center dropped below a certain amount. Over the...
Owner Loses
July 26, 2013
Facts: The initial term of a lease between an owner and its tenant, a supermarket, was for 20 years and contained an option for the tenant to renew four times for five-year extension periods. Under the initial term, the lease would automatically renew unless the tenant notified the owner that it...
Feature
June 20, 2013
In the past, utility costs have been the impetus for owners to encourage their tenants to conserve energy while operating their businesses. But in recent years, environmental concerns have compounded many owners’ concerns about tenants using excessive amounts of energy once they move into the...
Owner Wins
June 20, 2013
Facts: A trust that owned property that had been used as retail space signed a lease with a tenant that planned to use the space as a fast-casual restaurant. The lease gave the tenant the option to purchase the property at any time for $110,000. The tenant spent $300,000 on buildouts.
Owner Wins
June 20, 2013
Facts: A commercial developer sought an anchor tenant for the mall it was building. As an inducement to attract a certain national big-box retailer, the developer signed a purchase and sale agreement with the tenant. Under the agreement, the developer agreed to sell 27 acres to the tenant for $10...
Feature
May 23, 2013
Traditionally, common area maintenance (CAM) costs are calculated based on an estimate of what a shopping center’s CAM costs will be for the year, and the tenant pays a proportionate share of those costs. At the end of the year, the tenant’s payments are reconciled with the center...
Q & A
May 23, 2013
Q: I negotiated a “percentage rent” clause in my lease with a “general store”-type tenant at my center. At the time, the tenant didn’t have an automated teller machine (ATM) in its space, but it just installed one at the front of the store, so that customers can access...
