Negotiating Food Service Leases

A commercial lease with a food service tenant presents unique challenges that typical retail leases don't. For example, in addition to common retail lease terms, such as exclusive use and common area maintenance (CAM) provisions, you must carve out your right to control additional factors—noise, crowds, odors, specialized trash removal, and extended operating hours—that restaurants, food court, and other food service tenants have a tendency to create.

However, popular restaurant, food court, fast food, tavern, and other food service tenants can be lucrative for you and nearby tenants if they draw crowds to your property. But it's important to make sure that a particular food service tenant is right for your shopping center or mixed-use building. In this issue, you'll find expert commentary that you should consider before renting to a prospective food service tenant, and drafting tips and model language you can use when negotiating this unique type of lease.