Subleases can be more complicated than they seem. It’s not just a matter of allowing a tenant to give its space either temporarily or until the end of its lease to a replacement tenant. To protect themselves, owners should carefully draft sublease provisions.
Making a profit from tenants at your shopping center or mall depends on many factors—one of which is the key percentage rent arrangement. Percentage rent allows you to collect not only base rent, but also a percentage of the tenant’s gross sales done at the space it leases from you....
If you own a shopping center or office building and have financial difficulties, you may be dealing with one, or even several, liens filed against the property. A savvy tenant knows that if it doesn’t have priority if you become bankrupt, it could be dramatically affected, up to and...
Owners who lease space to large national retail tenants know that their demands can be hard to resist. Use of the space is the number one concern for these tenants. Often, they ask for flexibility in their use of the space that puts owners at a disadvantage. A lease that allows a tenant to use...
Many tenants need to customize the space they lease, whether it’s in an office building or shopping center. But altering space—even for simple improvements—can be complicated. So when signing leases, you’ll want to have a work letter agreement—a contract that...
Although leases provide remedies for many types of breaches, it can be hard to collect money later from an erstwhile tenant. Two major financial issues for owners are lease defaults and damage to space. If you’ve dealt with one or both of these potentially very expensive issues in the past...
Tenants large and small are attracted to the best deals for commercial space. But savvy tenants know that bottom line-friendly deals aren’t limited to items like comparatively low base rent rates or generous concessions and improvement allowances that beat offers from other landlords....
A big part of successfully running a shopping center is ensuring the safety of tenants, their employees, your employees, and customers. With security cameras or a security guard and alarms, you might think that you have the safety aspect of your operations locked down. But here’s something...
In recent years, filling space at shopping centers with smaller, non-traditional tenants rather than large national stores (many of which are suffering financially) has been a successful strategy for landlords. If you’re taking advantage of this rapidly growing trend, you should be aware...
Rent abatement is frequently mentioned when discussing commercial leases. But it’s not as simple as including a clause that spells out the circumstances under which tenants are entitled to withhold rent. There are many variables and, if you don’t draft rent abatement provisions...
Tenants often seek financing to help them run their businesses, so you have probably gotten numerous requests from tenants for a “landlord’s lien waiver.” Without the lien waiver, a tenant’s lender may refuse to go through with the loan, or an equipment lessor may refuse...
No matter how successful you are at minimizing costs and maximizing profits from your leases with tenants at your shopping center or office building, there’s no reason to overlook new ways to generate more rent and income....
