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Home » Topics » Commercial Lease Law Insider » Online Alerts

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Don't Assume Deletion of One Lease Clause Removes Related Provisions

Jun 11, 2015

Amending your lease with a tenant can work in your favor if you can remove certain portions that would've worked against you if exercised by the tenant. But keep in mind that removing a clause dealing with one right doesn't make a related right invalid. You must expressly delete each provision when amending the lease. Otherwise, the provisions are still in effect.

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Seek Tax Protections in Your CRE Lease

May 8, 2015

One of the key economic questions any commercial lease must address is whether the tenant is responsible for paying real estate taxes on the property and, if so, how much. More often than not, the tenant does have tax liabilities, but because of the money involved, the issue is often hotly negotiated. And while every deal is different and generally reflects the bargaining power of the sides involved, there are eight protect...

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Dealing with Struggling Tenant at Center

May 8, 2015

Q: I'm dealing with a struggling tenant at my shopping center. The tenant has been late paying rent two months in a row. If I continue to accept late rent each month, could the tenant argue that the lease has been modified by my actions and it’s entitled to pay late? What is the best way to handle this situation?


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Ambiguous Lease Interpreted Against Drafter

May 8, 2015

Leases for commercial space can be drafted by the tenant or owner. If you're responsible for drafting a lease with a tenant for your shopping center or office building, make sure that the terms and conditions in the document are clear and unambiguous. An ambiguous lease can cause multiple problems, regardless of who drafted it. That's because disputes about unclear terms could land you and the tenant in court for a ...

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Carve Out Sole Right in Lease to Set Tenant's Schedule

Apr 9, 2015

If you own a shopping center or strip mall, some of your retail tenants will probably ask you to allow them to operate during hours that are the most convenient for their businesses, even though you've set operating hours for the entire center. And you may be tempted to give some tenants, especially those who bring a lot of foot traffic to the center or have a lot of leverage, discretion for setting their own operating ...

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Include Five Lender Protections in Lease

Apr 9, 2015

When lenders make a loan secured by a mortgage or deed of trust against income-producing commercial real estate, they typically review lease forms and reserve the right to approve new leases to make certain that the owner will be able to service the debt and that the tenant mix will maintain or improve the value of the property. Additionally, lenders tend to make certain the terms and conditions include legal protections fo...

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Is Your Tenant's Lease Guaranty Enforceable?

Apr 9, 2015

If you require a tenant to have a guaranty in order for you to sign the lease with it, you may feel that you're protected in the event that the tenant stops paying rent. After all, the whole point of a guaranty is to be able to collect rent from the party who guaranteed the tenant's lease if the tenant fails to live up to its obligations. But if a guaranty hasn't been executed properly, you'll be left empty ...

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Put Limits on Early Access by Tenant

Mar 5, 2015

If you've signed a lease with a new tenant that wants to get access to its space in your shopping center or office building before the lease terms starts, it could seem harmless enough. But allowing a tenant  to do work in the space or install furniture and fixtures could create more problems than you anticipate, including the inherent conflict that results if both you and the tenant each attempts to complete renov...

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Be Practical When Hiring Experts at Tenant's Cost

Mar 5, 2015

If your lease with a tenant requires it to pay fees for professionals or consultants you must use for the space, it'll have to comply or risk breaching the lease. But that doesn't mean you can hire whatever experts you want at the tenant's expense.

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Use Two-Step Plan to Thwart After-Hours Crimes at Center

Mar 5, 2015

If shopping centers near yours have experienced vandalism or burglaries that took place after hours, you might be afraid that your center will be affected next. Installing more lighting in the parking lot is one of the best measures you can take. But there are other ways to deter after-hours crimes. To reduce the risk of an after-hours crime occurring at your building or center, add the following two safeguards to an &ldquo...

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