Online Alerts

Limit Tenant’s Right of First Refusal to Buy Space

April 7, 2017    

It’s an undertaking for any tenant to scout out prospective commercial space, negotiate a lease, and then deal with the logistics and expense of moving into that space. So, after going through all of the effort to get established at a property, it’s not unusual for a big tenant that...

Don't Let Profit-Sharing Provision Backfire on You

April 7, 2017    

When negotiating your leases, you may want to include a recapture right that you can exercise if the tenant intends to assign its lease or sublet all or part of its space. And you may want to include a profit-sharing clause that will require the tenant to pay all or part of any profit it makes...

Retain ‘Upscale’ Nature of Building

April 7, 2017    

Q: The office building I own is located in an up-and-coming neighborhood that consists of retail, office building, and residential apartment properties. It’s a so-called “upscale” shopping and living area, and I’d like...

Make 1031 Exchanges Work for You

March 1, 2017    

If you own commercial property and are contemplating branching out and acquiring more properties, you might not know where to start. A good jumping off point is understanding what type of leasing opportunities are available—and their interplay with the commercial real estate market now....

Reserve Ability to Unilaterally Change Tenant’s Number

March 1, 2017    

If a tenant wants you to specify the number of its unit, store, or suite in the lease, then say in the lease that the tenant’s unit, store, or suite is “presently known as [insert Unit/Store/Suite number, e.g., 4B]." The phrase “presently known as” will give...

Foreseeability of Tenant's Denied License Put Risk on Landlord

March 1, 2017    

Many businesses need certain types of licenses or need to meet certain legal requirements in order to operate. If those end up not being attainable, it renders their space unusable in some cases. And that could mean that you’ll have to deal with a tenant that’s trying to get out of...

Draft Broad Default Definition for Your Leases

February 2, 2017    

Every lease gives an owner certain remedies, such as eviction or the collection of damages, that the owner can use if something the tenant does or fails to do fits the lease’s definition of an “event of default.” But what if your lease doesn’t clearly define what acts or...

Owners Not Out of the Woods Yet for Ice Cleanup

February 2, 2017    

Spring is approaching, but owners should still stay on top of ice removal responsibilities in common areas of commercial properties. It’s important to spell out who’s responsible for ice removal in front of tenant’s stores—you or the tenant. You might wonder whether if...

Don’t Let Recaptured Space Dig into Your Profits

February 2, 2017    

Many owners negotiate a recapture right in their leases that they can exercise if a tenant intends to assign its lease or sublet all or part of its space. And this could include a profit-sharing clause that will require the tenant to pay all or part of any profit it makes from an assignment or a...

How to Get Prepared for Tenant’s Early Departure

January 5, 2017    

The ability to turn a profit by selling products online has in recent years drastically reduced some business’s need for physical space, but commercial real estate leases tend to have terms that span several years, and sometimes decades, so a tenant could’ve signed a 20-year lease at...

Don’t Foot Bill Alone for Beneficial Off-Site Improvements

January 5, 2017    

If, like many shopping center owners, you provide off-site traffic improvements for your tenants, you should make sure that you’re compensated for that. After all, these improvements—for example, special signage and lighting in areas leading to the property or a way to control the...

Give Tenant Realistic Time to Comply with Lease

January 5, 2017    

If a tenant isn’t in compliance with its lease terms because it’s waiting for certain items or obligations that take time, don’t automatically jump to a lawsuit. The cure period you’ve allowed the tenant to become compliant might not be realistic if the requirements it...