Online Alerts

Safeguard Effectiveness of Tenant’s Guaranty

June 8, 2017    

At first, a guaranty from a tenant that you’re unsure about seems like a great safety net. Another party will take over the tenant’s lease obligations if it fails to do so itself, so you won’t be left on the hook trying to mitigate the financial or other damage. In isolation, a...

Resisting Pressure to Overlook Tenant’s Mistake

June 8, 2017    

Q: Although I’ve had a good relationship with a tenant at the shopping center I own, I’m reluctant to overlook its failure to exercise its option to renew in a timely manner. The tenant has been pressuring me by saying that it...

Terminate Lease for Tenant that Understates Gross Sales

June 8, 2017    

If you’ve negotiated percentage rent provisions in your leases with several of your retail tenants at the shopping center you own, you’re probably relying on these tenants to give you correct gross sales figures so that you can get the percentage rent that you’re owed, and can...

Commercial Lease Law Insider Wins Newsletter Award

June 7, 2017    

On June 6, Commercial Lease Law Insider received the Second Place Award for Best Business Newsletter, presented by the Specialized Information Publisher’s Association (SIPA) at its annual conference in Washington, D.C.

The judges based their decisions on...

Getting the Right to Collect Rent Directly from Subtenant

May 4, 2017    

In theory, a sublet seems easy: When you let a tenant sublet its space, the subtenant pays the tenant its rent due under the sublease, and the tenant pays you its rent or percentage rent due under the lease. While that’s the way sublet scenarios are designed and expected to work, you can...

Beware of Accepting Post-Eviction Rent from Tenant

May 4, 2017    

Sometimes, when a tenant’s retail business is in trouble, instead of closing the tenant will try to find a buyer. If the owner had previously obtained an eviction order because the tenant had defaulted on its rent obligations, things can get complicated, especially in a situation where the...

Withholding Consent to Unfavorable Sublease

May 4, 2017    

Q: A tenant that wants to sublet its space has offered a replacement tenant, but the new tenant wouldn’t meet the requirements we had agreed on in the sublet and assignment provisions of our lease, so I have refused to consent to this...

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...