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Commercial property owners know that having a visible and successful restaurant is not only lucrative, but also can be an amenity that improves the image of the property and provides an essential service to residents and other tenants or occupants of an office building, shopping center, or mixed-use project, not to mention the local community. However, a large number of all new restaurants close after only one year of operation. And this rate greatly increases after thr...

Assignments can work in both a commercial property owner’s and tenant’s favor in certain circumstances. But there also are times when an assignment could be harmful. For example, if you’ve found a tenant that’s perfect for your retail space, but because of the synergy you’ve created among tenants at the shopping center, it’s crucial that this tenant mustn’t assign its lease to any type of business that deviates from what it is s...

Sometimes, in addition to the lease itself, a tenant and owner will sign a common area maintenance agreement. If that’s called for, be very careful about making sure that the terms in both documents match. Otherwise, any ambiguity could lead to a court battle. That was the case for a movie theater tenant and owner in Washington.

Don’t be surprised if a prospective tenant asks you to give it early access to its space before all aspects of your deal are finalized. Some tenants are confident that their financing will go through and that other issues will be resolved without incident. A common reason in retail leasing for tenants to ask for the right to get into the space early is to avoid delays in opening. While it makes sense, and you might want to accommodate a tenant that brings somethin...

Some commercial tenants require certain amenities and they won’t sign leases for space if they don’t get them. But you may be concerned about what would happen if you have to get rid of amenities. So how can you carve out a right to eliminate amenities in the future if it becomes necessary?

The typical American shopping mall landscape has changed drastically—and for the worse—in recent years, in large part because nearly every item sold from a traditional brick-and-mortar store can be purchased online. Consumers who would rather devote time to things other than driving to a mall have benefitted. The retail behemoth Amazon.com even promises to deliver packages in two days. That has left lower end centers and malls in trouble.

Violating the Americans with Disabilities Act (ADA) can be costly for commercial real estate owners. It’s a complicated law with nuances that create pitfalls for owners. While the ADA is detailed in terms of spelling out under what circumstances a building’s or a tenant’s space must be altered to make it accessible to people with disabilities, it doesn’t say who is responsible for making and paying for these alterations. That is, are owners or te...

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 to keep the appearance of my building attractive. However, a prospective tenant needs to install rooftop equipment to make its business function in the space it would lease...

Slip-and-fall accidents at commercial properties are, unfortunately, ubiquitous in the wintertime. As the owner of the property you’re likely to be pulled into any lawsuit. But whether you end up being financially responsible will be determined largely by whether it’s you or the tenant that is responsible for snow or ice removal. A recent New Jersey case demonstrates how the makeup of a shopping center—that is, whether it’s single- or multi-tenan...

Unusual buildings—ones with “character,” a unique layout, or historic elements—can be wildly successful, but you’ll need to take into account marketing and leasing issues that may not be a factor when leasing traditional commercial properties.

Marketing your space effectively is key if you own a “quirky” property. Most businesses can operate out of traditionally configured space and don’t want or need to consider oth...