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Offering tenant improvement allowances (TIAs) is a great way to attract and retain small and new businesses that can’t afford the renovations they need to open shop. But it can also backfire if the tenant defaults before moving in or generating the revenues necessary to pay you back. TIAs also expose you to financial and liability risks. Negotiating the right TIA lease clause is crucial to avoid getting burned.

It’s among the least appreciated parts of the lease. But while rent, renewal, and other business terms command most of the attention, the so-called force majeure clause takes center stage when disasters occur. It’s at that point that both landlords and tenants recognize the importance of the clause and kick themselves for using generic boilerplate language rather than making the effort to negotiate a force majeure clause that makes sense for their particular...

Although the restaurant business is notorious for fads, the food hall has demonstrated that it’s more than just the flavor of the month. Like its cousin the mall food court, the food hall is a mix of retail eateries sharing space within a larger facility. The difference is that food halls offer not just fast food and shared seating but a curated, high-end “foodie” experience supplied by local farmers, artisanal vendors, gourmet chefs, restaurateurs, co...

Each year, literally thousands of private individuals file ADA lawsuits against landlords for money damages claiming their properties aren’t accessible to the disabled. In many of these cases, the alleged violation occurs not in the common areas but inside the tenant’s premises.

As a means of securing a tenant’s obligations under the lease, a letter of credit (LC) offers distinct advantages over a cash security deposit. The landlord’s underlying assumption is that if the tenant defaults, drawing on the LC will be as easy and automatic as making a withdrawal from the tenant’s security deposit account. Unfortunately, it doesn’t always work out that way. The key is what the LC says. Accept an LC with terms unfavorable to yo...

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 for the full three years’ worth of rent. There’s no clause in the lease requiring the landlord to “mitigate its damages” in the event of a tenant default. ...

“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 rare, recent rulings in favor of tenants have fueled a resurgence of new claims. Bottom Line: You need to be on guard against constructive eviction liability risks. Here&rsq...

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

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’t collect rent from a tenant. A tenant that isn’t paying its rent is probably struggling to such a degree that it might go under, leaving you with the difficult job ...

Despite the abundance of online retailers offering great prices and free delivery to customers at the click of a button, shopping centers have slowly but surely made a comeback since the economic downturn nearly 10 years ago. But it’s not enough for center owners to coast on customers’ excitement over seeing items in person or enjoying a shopping experience that leads to sales. Center owners have to stick to marketing strategies more than ever, to grab custo...