Feature Articles

Set 11 Conditions for Consenting to Shopping Center Assignments and Subleases

May 23, 2022    

As retail and restaurant businesses contract and struggle to survive, many shopping center tenants are looking for ways to get out of their leases. One common exit strategy is for tenants to assign their lease interest or sublease some or all of the leased space to a third party. Tenants are...

Don't Get Burned When Letting Tenants Contract Their Space

April 25, 2022    

Here’s a four-phase strategy for drafting a lease amendment letting a tenant contract its space.

 

In a post-pandemic world where a greater volume of work and business will be carried out remotely, many tenants will need the flexibility to not only expand but also...

How to Negotiate and Structure a Lease Buy-Out

March 22, 2022    

The COVID-19 pandemic has illustrated the need for landlords and tenants to be flexible and work together to find solutions to leases that have become disadvantageous. One approach is to enter into a buy-out agreement allowing the tenant to end the lease early in exchange for an agreed-to sum of...

Set Limits on Retail Tenant’s Right to Terminate When Anchor Departs

February 20, 2022    

Even before the pandemic, shopping center tenants were insisting on the right to terminate their lease in the event the anchor tenant leaves. Giving in to these demands may be unavoidable when tenants are a part of a national chain or otherwise enjoy negotiating leverage. But you should also...

‘Best Efforts’ vs. ‘Commercially Reasonable Efforts’: What the Difference Is and Why It Matters

February 20, 2022    

Chances are, your standard lease form includes one or more provisions requiring the tenant to exercise some kind of “efforts” to achieve a desired but uncertain result or outcome.

Limit Holdover Rent Cuts to Short Holdovers

February 20, 2022    

Getting tenants to leave their space when the lease ends can be a difficult and costly proposition. For one thing, you may have to initiate an eviction suit to get the tenant out. And if you’ve already re-rented the space, holdovers expose you to the risk of being sued by the new tenant...

Make Tenant Pay Extra Security If Its Guarantor Has Financial Problems

January 26, 2022    

In these uncertain times, securing rock solid assurances against tenant default is of paramount importance. The challenge is great. COVID-19 has left many tenants strapped for cash and unable to scrape together a security deposit. As a result, landlords are having to ask for third-party...

Don't Rely on Tenant's Efforts to Re-Rent Vacant Space

January 26, 2022    

Don’t ease up on your efforts to re-rent space that a tenant has vacated early—even if the tenant is doing its own search for somebody to take over its rent obligations. While spending your own time and money might seem like a needless reduplication of effort, sitting back and...

Follow Special Lease Requirements When Providing Default Notice

January 26, 2022    

Before notifying a tenant that it’s in default, be sure to check the lease to see if it includes any special requirements. If so, follow those requirements to the letter, or you could end up losing your eviction and other remedy rights.

Don't Make Defaulting Tenant Guess on Months of Nonpayment

January 3, 2022    

Don’t send tenants a default notice for nonpayment of rent that doesn’t specifically identify the months. Failing to list the months of nonpayment in the notice may cost you your right to evict the tenant or terminate the lease.

Get 5 Lease Protections When Listing Tenant's Name in Exterior Signs

December 22, 2021    

The size, look, style, and content of the exterior signs listing a building’s name and tenants can have a significant impact on not only a property’s marketability and curb appeal but also on the landlord’s image and reputation. That’s why landlords should seek to...

Get Proof of Partnership/Corporation's Authority to Sign Lease

December 22, 2021    

Before signing a lease with a partnership or corporation, get proof that the business is a valid legal entity and that it’s taken the necessary partnership or corporate action to allow it to enter the lease. Otherwise, you may have a hard time enforcing the lease. The risk: If the...