Feature Articles

Limit Your Duty to Re-Let After Tenant Defaults

May 20, 2019    

Consider this situation: With three years remaining on its lease, a commercial tenant decides to pull up stakes, vacate the premises, and stop paying rent. The landlord makes no effort to re-let the space and allows it to remain vacant through the end of the lease term. It then sues the tenant...

Don't Charge Tenants for Electricity 'Consumed'

May 20, 2019    

If your lease requires tenants to pay you their share of the property/facility’s electric bill, don’t say they have to pay for the electricity they “consume.” That’s because the bills you receive from the electric company may include elements not related to...

Specify Tenant’s Alleged Lease Violations in Eviction Notice

May 20, 2019    

Make sure your eviction notices (a.k.a. notices to quit) specify exactly which duty and section of the lease the tenant violated. Otherwise the notice may be too vague and you won’t be able to get a court to evict the tenant no matter what it allegedly did wrong.

Put Three Protections in Lease to Prevent Constructive Eviction Claims

April 22, 2019    

“Constructive eviction” happens when a landlord commits a lease violation so egregious that it effectively forces the tenant out. Result: The tenant is free of all obligations and, in many cases, entitled to damages. And while constructive eviction cases used to be somewhat...

Drafting Licenses & Leases for Nontraditional Commercial Space

March 28, 2019    

By Sujata Yalamanchili, Esq. and Elizabeth A. Holden, Esq.

Addressing the Special Concerns of Companies That Use Co-Working Spaces

March 28, 2019    

By Sujata Yalamanchili, Esq. and Elizabeth A. Holden, Esq.

Co-working spaces look like cool, hip, innovative spaces, so you may have wondered if you can do your job in one of those spaces. Could a law firm or just an individual attorney sit at a table for a day, type away, and...

Protect Interests When Dealing with Financially Troubled Tenant

February 12, 2019    

While retail and office building owners field defaults of many kinds from tenants that fail to follow their lease terms, nonpayment of rent is the most common breach of a tenant’s lease. It signals bigger problems for you than just your bottom line being affected in the months that you don...

Don't Forget Beneficial Transportation in Operating Expenses

February 12, 2019    

If you’re the owner of a large retail property or several properties, you might decide to capitalize on the convenience factor and provide transportation for shoppers. While maximizing sales benefits you in the form of higher percentage rent and maintaining cotenancy obligations by...

Don't Accept Ambiguous Definition of 'Merchandise' in Use Clause

February 12, 2019    

An increasing number of retailers sell both new and “vintage” or consigned merchandise. But if you want a retail tenant’s space to be used solely or primarily for sales of new merchandise, then you’ll need to say this in the lease’s use clause. And be aware that...

Require Tenant to Offer Same Deal as Third Party for ROFR

February 12, 2019    

Some owners offer a tenant the right of first refusal (ROFR) to buy a building, should they decide to sell the property. If you decide to do this, make sure that you don’t get burned by the current tenant’s lower offer than a third party. When negotiating a lease with a tenant you...

Negotiate Hazardous Materials Cleanup with Medical Tenant

February 12, 2019    

Medical office tenants may pose environmental and safety risks if they generate hazardous materials and medical waste. Contamination of space can be a nightmare for you, but you can ameliorate this by requiring the tenant to return the space in the same condition that it was in when the tenant...

Determining Liability for Third-Party Damage

February 12, 2019    

Q:...