Feature Articles

Negotiate 11 Safeguards in Insurance Clause for 'Hazardous' Materials Tenant

June 20, 2018    

A big part of successfully running a shopping center is ensuring the safety of tenants, their employees, your employees, and customers. With security cameras or a security guard and alarms, you might think that you have the safety aspect of your operations locked down. But here’s something...

Negotiate Extension for Delivery of Space

June 20, 2018    

One thing that owners don’t like to hear when negotiating a lease is that the tenant must have possession of the space by some important date, known as the “drop-dead date.” This is an issue because the tenant usually wants the owner to suffer stiff consequences if the drop-...

Don't Take on Liability for Tenant's Visitors

June 20, 2018    

You can’t stop third parties from suing you if they’re injured after hours by someone in your building or center—but you can protect yourself financially in other ways. For example, make a tenant pay for the actions of its visitors, agents, employees, and subtenants. And make...

Good News for U.S. CRE in Form of Rising Foreign Investment

June 19, 2018    

Despite an uncertain political climate, foreign investors are keen to continue investing in U.S. commercial real estate. In fact, the U.S. continues to be the single largest recipient of foreign direct investment (FDI) in the world, to the tune of more than $450 billion from other countries...

Use Contractual Lien Provision When Leasing to Uncertain Tenants

May 29, 2018    

In recent years, filling space at shopping centers with smaller, non-traditional tenants rather than large national stores (many of which are suffering financially) has been a successful strategy for landlords. If you’re taking advantage of this rapidly growing trend, you should be aware...

Plug Five Loopholes in Damage and Destruction Clause

May 29, 2018    

Unfortunately, fires, floods, and other casualties can happen at the shopping center or office building you own. If you’ve signed typical leases with your tenants, they probably place some limits on your restoration obligations. But after a casualty, it may not be cost effective or...

Staying Within 'Prescription Period' to Sue for Co-Tenancy Violation

May 29, 2018    

Q: One of the tenants at the shopping center I own has multiple businesses and doesn’t monitor its co-tenancy requirements. I breached the lease by not replacing a tenant that went out of business with a suitable replacement tenant...

Draft Airtight Rent Abatement Provisions

April 30, 2018    

Rent abatement is frequently mentioned when discussing commercial leases. But it’s not as simple as including a clause that spells out the circumstances under which tenants are entitled to withhold rent. There are many variables and, if you don’t draft rent abatement provisions...

Carve Out Owner-Favorable Flexibility When Negotiating Visibility Protection

April 30, 2018    

Because visibility of its show windows and storefront signage is always a concern for retail tenants, a discussion about visibility will inevitably come up in negotiations for a lease for space at your center. Savvy tenants will demand that you agree in the lease not to block this visibility....

Don't Renew Lease Without Release from Litigation

April 30, 2018    

Suppose your lease doesn’t give a “problem tenant” a renewal option, but the tenant wants to stay in its space. You might be tempted to allow it to stay if the tenant is important to the synergy at your center or serves some important purpose in your office building. This is...

Get Control Over Bankrupt Tenant's Proposed Assignee

April 30, 2018    

Unfortunately, tenant bankruptcies are something you’ll probably have to face if you own an office building or shopping center long enough. You need to take every step possible to protect yourself. The good news for shopping center owners is that bankruptcy laws give you more assignment...

How to Draft Owner-Friendly Lien Subordination Agreement

April 10, 2018    

Tenants often seek financing to help them run their businesses, so you have probably gotten numerous requests from tenants for a “landlord’s lien waiver.” Without the lien waiver, a tenant’s lender may refuse to go through with the loan, or an equipment lessor may refuse...