When drafting leases or lease amendments, use the terms “landlord” and “tenant,” rather than “lessor” and “lessee,” to avoid confusion, suggests James V. Persino, a Chicago-based commercial property developer. It's difficult to confuse or...
Disasters have always affected commercial owners who must deal with property damage caused by snowstorms, hurricanes, fires, and floods. Passing disaster-related expenses through to tenants in common area maintenance (CAM) charges can lower your repair bills and boost your bottom line after your...
Q I'm thinking of renting space in the first floor of the mixed-use building I own to a successful retailer. I'd like to offer the tenant a long-term lease because I think it will bring substantial foot traffic to the other stores in the...
When drafting your leases, put all definitions of lease terms in one place, such as a glossary at the front of the lease or an index. This should help make your leases easier to read and understand.
You may be negotiating a lease with a tenant that plans to operate a restaurant it considers “upscale.” And this tenant may demand that you give it an exclusive that restricts you from renting space in your center to any other “upscale” restaurant. But if you agree to bar...
Realty Income Corp., a REIT that specializes in net lease investments, has signed purchase agreements to acquire up to 33 single-tenant, retail, distribution, office, and manufacturing properties under long-term net leases—for approximately $544 million. The portfolio has approximately $...
Office building and retail property values are rising, defying predictions of a collapse that would drag the U.S. economy back into recession. Last February, the Troubled Asset Relief Program (TARP) Congressional Oversight Panel said that a deteriorating commercial real estate market had the...
Facts: An employee of an office building tenant suffered injuries after she tripped and fell on a raised edge of the metal molding surrounding a trapdoor on the floor of the tenant's pantry room. The purpose of the trapdoor was to access a crawl space approximately three feet high...
Facts: A career center tenant signed a lease with the owner of an office building to rent space in four office suites for an initial term of 124 months. The building was sold, and the tenant and new owner extended the lease. The owner later claimed that the tenant had defaulted on its...
The Chicago City Council has approved seven ordinances that aim to increase economic opportunities for communities across the Windy City. The ordinances are enabling the construction of new retail and office building properties, the rehabilitation of industrial properties, and neighborhood...
Q Several tenants have already moved into the shopping center I own, although parts of the center are still under construction. When the project is complete, the center will consist of five freestanding buildings. One tenant's lease has an opening...
High-risk tenants, such as liquor and gun stores, pose potential dangers that typical retail businesses don't. But because alcohol and guns are available at limited locations, these high-risk tenants have a captive audience of customers that create a steady income stream, lessening the...
