True Confessions of a Landlord’s Counsel: What a Commercial Tenant Needs to Know When Negotiating a Lease

Part 7:  Additional Rent – Common Area Maintenance Costs. Common Area Maintenance costs (generally known as “CAM”), should be one of the most negotiated areas of a commercial lease as so many factors and positions come into play which will vary according to the make-up of each commercial project.  A tenant needs to be wary that its Landlord is not using CAM costs as potential profit center for the management, operation and maintenance of its commercial project.  Likewise, a tenant [...]

By |2018-10-15T19:14:03+00:00September 21, 2018|Commercial Real Estate, General|

Recapture Provisions and Repurchase Options

Larger retail projects are developed with anchor tenants or big boxes in mind.  Assume for the moment that you have plans for a grocery store surrounded by small shop tenants, and you have yet to decide if you are going to sell or lease the parcel to the grocery store.  Your site plan and your marketing focus on the vehicle and pedestrian traffic that will be attracted to the center because of the grocery store.  The shop tenants want to [...]

By |2018-09-27T21:47:26+00:00August 24, 2018|Commercial Real Estate|

True Confessions of a Landlord’s Counsel: What a Commercial Tenant Needs to Know When Negotiating a Lease (Part 6)

Part 6:  Additional Rent – Insurance. Insurance is one of the three major categories of Additional Rent in commercial leases which are generally passed through to the tenant, the other two being Taxes and Common Area Maintenance Expenses (they are also the three pass-through categories that coin the phrase “triple net lease”). The insurance section of any commercial lease is usually the section where most tenants’ eyes begin to glaze over when they come across terms like “indemnity” and “waiver [...]

By |2018-08-09T23:34:46+00:00June 29, 2018|Commercial Real Estate|

What is a Retail Center?

During my career as a commercial real estate attorney, I have been amazed at the changes that have happened in the shopping center industry.  Who would have thought that a church, massage parlor, gym, church, vape shop, used clothing store and dentist could be the prime tenants in a shopping center?  A review of the many shopping center forms in my file, though, caused me to reconsider the nature of a shopping center and the typical requirement that it [...]

By |2018-07-12T19:58:41+00:00June 1, 2018|Commercial Real Estate|

True Confessions of a Landlord’S Counsel: What a Commercial Tenant Needs to Know When Negotiating a Lease (Part 5)

Part 5:  Additional Rent - Taxes. Substantially all the amounts that make up “Additional Rent” fall into three major categories: Taxes, Insurance, and Common Area Costs.  In this part we will focus in on Taxes.  In most commercial leases a landlord will want to pass through to each of its tenants their fair share of all the real property taxes and assessments that are billed by the local county assessor’s office against the legal parcel of land on which the [...]

By |2018-04-12T19:06:44+00:00April 6, 2018|Commercial Real Estate|

Waterfront Property and the Public Trust Doctrine

Many people I know dream of owning that waterfront property that benefits from a beautiful sunset over the ocean, lake or river.  In fact, a client recently inquired about a great waterfront hotel site, and he was somewhat taken aback when I asked about the implications of the public trust doctrine.   For those of you who have not studied Roman and English common law, this doctrine applies to all properties that were submerged or were tidelands (lands between mean high [...]

By |2018-04-10T18:34:21+00:00March 9, 2018|Commercial Real Estate|

True Confessions of a Landlord’s Counsel: What a Commercial Tenant Needs to Know When Negotiating a Lease (Part 4)

Part 4:  Additional Rent. Additional Rent is a collection of all the various costs of operating a building and its surrounding property that a landlord charges a tenant, in addition to the “Base Rent” that the landlord charges for space within its building.  Most commercial leases generally fall into one of two major categories, “triple net leases” or “gross leases”.  The major difference between these two forms of lease is the manner in which they pass through to the tenant [...]

By |2018-01-20T00:45:33+00:00January 12, 2018|Commercial Real Estate|

THE HELPFUL CLIENT

Clients always hope that the attorney will document the deal perfectly and provide full and absolute protection.  Unfortunately, clients cannot delegate all duties and need to play an active role with the attorney to make sure that all issues are considered and addressed.  With that in mind, here are a few bullet points to consider: Know the opposition – It is always helpful if the client devotes some time to getting acquainted with the other side.  For example, before entering [...]

By |2018-01-04T00:09:15+00:00December 15, 2017|Commercial Real Estate|

A Physical Approach to Leasing

For someone excited about opening a new business, he or she may want to stop and consider the hidden costs of leasing that do not appear in the rent section of the lease. Assume that Tammy has just signed a lease to open a fitness center in a converted warehouse.  The lease notes that she is taking the space in an "as-is" condition, and she is responsible for all tenant improvements that must be completed. Tammy did not want to [...]

By |2017-10-10T00:13:45+00:00September 22, 2017|Commercial Real Estate|

True Confessions of a Landlord’s Counsel: What a Commercial Tenant Needs to Know When Negotiating a Lease (Part 3)

Part III: The Letter of Intent. A letter of intent (“LOI”) is generally considered a nonbinding acknowledgement between the parties that they have reached a tentative understanding of some the material business points that are to be contained in the lease, so that they feel comfortable enough to expend additional time and expense towards negotiating a definitive lease that will incorporate the terms acknowledged in the LOI, and other terms to be negotiated by the parties. Once the LOI is [...]

By |2018-08-09T23:35:21+00:00June 16, 2017|Commercial Real Estate|
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