Leasing Illustrated

Dec
01
2017
Subleases sometimes include the right of subtenants to use the existing fixtures, furniture and equipment in the subleased space. The tenant/sublandlord moving on to other space may be purchasing all new FF&E and the older existing FF&E may fit the needs of the incoming subtenant, so if properly structured it can be a win-win for both parties.
Sep
29
2017
Subleases are peculiar animals and the determination of whether or not to incorporate specific overlease provisions into a sublease is often open to interpretation. In today's issue, we focus on the service provisions of a sublease (e.g., the right to receive HVAC, electricity, cleaning, and similar services) and suggest ways to address the inclusion or exclusion of these provisions in a sublease.
Nov
14
2016
Tenants need to protect themselves from aberrations in their base year for operating expenses to avoid being hit with unexpected (and potentially large) escalation payments in later years. The way to do that is with a "gross-up" provision that is fair to both the tenant and the landlord. In today's issue, we focus on six issues to cover in your lease's gross-up provision.
Nov
01
2016
Generally, a tenant will have to accept some form of recapture in connection with a proposed assignment or sublease unless it has a good deal of leverage. When a landlord recaptures by subleasing back the space that the tenant intended to sublease, it presents particular challenges and risks to the tenant. In today's issue, we focus on seven issues to address with recapture subleases.
Sep
01
2016
Expansion options generally consist of (x) rights of first offer (ROFOs), in which the landlord provides a "first bite" on particular space.
Aug
01
2016
Tenants must make sure that their real estate tax base year properly reflects a fully stabilized and assessed building. This is of particular importance with a newly constructed building or one which is undergoing a substantial renovation.
Jul
01
2016
I can tell you from the safe perch on my den couch that in commercial leasing self-help has a more positive (and less painful) connotation.
Jun
01
2016
Although commercial leasing attorneys do tend to wax eloquent, and I admit that on occasion my lease provisions read like a good romance novel, my licenses tend not to be as poetic as a thoroughbred's name.
May
01
2016
In his autobiography, Looney Tunes animation director Chuck Jones indicated that the creators of the Road Runner cartoons carefully followed nine rules for each cartoon (e.g., "no dialogue other than 'beep beep'", "no outside force can harm the coyote; only his own ineptitude or the failure of the Acme products.", etc.).
Apr
01
2016
A guaranty of payment and performance covers all of the obligations under a lease, while a good guy guaranty (at least in theory) only covers obligations accruing through the date the tenant hands the keys back to the landlord.