Allowing tenants to sublease the property they lease from you to third-party subtenants over whom you have no direct control carries a degree of risk. Since you don’t have a direct contract with the subtenant, you may be dependent on the tenant to enforce the terms of the sublease and have...
Percentage rent leases commonly permit tenants to deduct or exclude certain kinds of transactions that don’t generate a profit for the tenant from the gross sales on which percentage rent is due. Typical examples include revenues from gift wrapping, deliveries, repairs to items purchased...
Commercial leases typically require tenants to refrain from creating nuisances that interfere with other tenants’ use and enjoyment of their property. The problem is that “nuisance” is often in the eye of the...
Balance your need to maintain order with the rights of political groups.
This November’s presidential election may be the most volatile in recent memory. In the months ahead, political groups and protestors may demand access to the common areas of your...
Like many landlords, your lease may contain a tax escalation clause requiring the tenant to pay its share of any real estate tax increases that occur during the lease term. These increases are often measured off a base year, typically the first year of the lease. However, pegging future tax...
Include 10 terms in your termination option clause.
Extraordinary individuals are the driving force behind many startups and small businesses. But leasing to tenants that depend so heavily on such individuals is risky. The business could suddenly come to a...
Prospective tenants who aren’t fully financed might be reluctant to sign a lease unless and until they know they’ll be able to secure an operating loan. If they can’t get the loan they need, they’ll...
