That’s All Folks!

This is the 116th issue of Leasing Illustrated. That is nine years and 11 months in dog (Katz?) years. How did that go by so fast?! I have no idea. But I did want to say thank you with this newsletter.

Partnership Robotics

Certain businesses are structured as professional partnerships or limited liability partnerships, such as law firms or accounting firms. When entering into a lease for a partnership, it is important to provide exceptions to the assignment and subletting restrictions to allow for the conduct of ordinary partnership business and to include exculpation language so that the landlord will look solely to the income and assets of the tenant entity and not the individual partners. In today’s issue, we suggest three broad areas of protection for a partnership business with respect to assignment / subletting and exculpation.

Believe (In Your Terrace)!

Although not common, a tenant is sometimes given the right to use the setback adjacent to its space as a terrace. This is not an easy right to obtain from a landlord and comes with many building and legal requirements, but can be a very valuable amenity. In today’s issue, we offer a dozen suggestions regarding the setback or terrace provision in your lease.

Making Operating Expense Headlines

I have often in these pages expressed my frustration that tenants do not regularly (if ever) audit the operating expenses charged under their leases. It is astounding how much money can be left on the table when tenants do not keep their landlords honest by requiring and invoking an audit right. In today’s issue, we offer eight suggestions regarding your lease’s operating expense audit provision.

Lou, Bald Eagles and Carbon Emissions

We have discussed in past issues various new laws attempting to address climate change and the carbon emissions of commercial buildings, including in New York City Local Law 97 of 2019. As we have seen in NYC, landlords are starting to address these laws in their lease drafts in part by pushing most of the costs of compliance on to their tenants. In today’s issue, we offer ten suggestions to address concerns raised by your lease’s carbon emissions provision.

The Dude (and Cannabis Leasing) Abides

Many states have legalized recreational marijuana use and this may lead to a huge increase in cannabis leasing for dispensaries, warehouses and cultivation centers. Notwithstanding the potential, cannabis leases are fraught with numerous risks since cannabis remains a controlled illegal substance under federal law. In today’s issue, we offer eleven things to consider with respect to cannabis leasing.

Tenant Leasing Illustrated April 2021 Bounding and Astounding Co-Working Spaces

As office tenants contemplate their post-COVID return, one option may be co-working spaces which provide the flexibility of a short-term obligation. However, tenants need to beware since many co-working agreements are structured as unfriendly licenses and require a good deal of revision. In today’s issue, we offer fourteen suggestions when negotiating a co-working agreement.

Termination on the Menu

Termination options allow a tenant to terminate its lease before the scheduled expiration date by providing notice and usually a termination payment. This is a very valuable tool, especially in these COVID times, but exercise of the right can be tricky. In today’s issue, we offer seven suggestions when exercising an existing termination option in a lease.

Going Dark a Wee Bit

Commercial retail tenants need the ability to "go dark" or shut down their business, at least on a temporary basis, but landlords want their retail tenants to operate on a continuous basis, especially if percentage rent or co-tenancy provisions are involved. To add to this mix, we are finding that some retail tenants are now using their continuous operation provisions to create some leverage with their landlords. In today's issue, we raise eight suggestions when preparing the continuous operation language in your retail lease.

Swimming Your Lease Into 2021

As 2020 (finally) gets out of our way and makes room for 2021, we have been reading through a number of articles and studies prognosticating about what is in store for commercial leasing in the days and months ahead. In today's issue, we review eight trends to watch out for in 2021.