In the past, utility costs have been the impetus for owners to encourage their tenants to conserve energy while operating their businesses. But in recent years, environmental concerns have compounded many owners’ concerns about tenants using excessive amounts of energy once they move into...
Traditionally, common area maintenance (CAM) costs are calculated based on an estimate of what a shopping center’s CAM costs will be for the year, and the tenant pays a proportionate share of those costs. At the end of the year, the tenant’s payments are reconciled with the...
Q: I negotiated a “percentage rent” clause in my lease with a “general store”-type tenant at my center. At the time, the tenant didn’t have an automated teller machine (ATM) in its space, but it just installed...
If you defaulted on the mortgage loan for your office building or center because a major tenant didn’t pay its rent, leaving you short of money to make a loan payment, it seems only fair that the delinquent tenant should have to reimburse you for the loan-related damages you had to pay to...
It’s preferable to not give a tenant a “performance kickout right”—that is, a right to terminate the lease if its gross sales during a certain period fall below or don’t reach a certain dollar amount. That’s because terminated leases don’t generate...
When you need to find a contractor for a major project at your center, such as an ongoing job like landscaping, or a one-time job like replacing roofs, don’t simply hire the first available contractor you can find. Instead, prepare a request-for-proposal (RFP) to solicit bids from multiple...
Typically, when an owner agrees to allow a tenant to assign or sublet its space, it uses lease provisions that require the tenant to give it some or all of its profits from any sublet or assignment. If your lease says that these profits include the sale of any of the tenant’s personal...
Q: My shopping center leases let me pass through the cost of lighting the parking lot during center hours. But some of my tenants—such as a movie theater and a restaurant—commonly stay open after center hours. I want to charge...
Food trucks have unprecedented commercial real estate opportunities now, essentially turning them into tenants in some scenarios. That’s because for some property owners, the presence of these next-generation food trucks at their shopping centers can satisfy a need for diversified food...
Travelers will have the opportunity to treat themselves to more than just magazines, snacks, and coffee while waiting for flights at John F. Kennedy International Airport. An expansion project at the New York City airport’s Terminal 4 will include upscale specialty shops, brought in by...
When the terms of a lease are negotiated carefully—and complied with—leasing can be the most profitable and efficient use of your commercial space. And you might think that a traditional commercial lease is the only option available to you. But a lease isn’t as appropriate for...
What exactly are license agreements and how can they be beneficial to owners? When you sign a lease with a tenant it creates a landlord-tenant relationship that can work in your favor, but also comes with some potential problems. For example, when a tenant defaults on its lease owners usually...
