As the COVID-19 coronavirus wreaks havoc with our day to day activities and financial markets, our thoughts and prayers go out to those who are ill and struggling. As part of their effort to mitigate the fallout, businesses should review their leases and other related agreements. In today's issue, we provide five suggestions with respect to your commercial lease and COVID-19.
Every tenant needs the ability to transfer its lease with respect to a "corporate transaction" (such as a merger, consolidation or transfer of assets or equity interests) without the need to obtain its landlord's consent. Often, the language of lease assignment and subletting provisions is ambiguous in this regard and this can lead to problems down the road. In today's issue, we provide seven suggestions when drafting a lease assignment provision to provide easy assignability for such a corporate transaction.
Although tenants struggle to obtain reasonable exit strategies for their commercial tenancies, some leases provide landlords with broad flexibility through a termination option in the event that the landlord decides to demolish, renovate or change the use of its building. The first drafts of these landlord termination options leave a lot to be desired in terms of providing protections for the tenant. In today's newsletter we discuss landlord termination options and provide ten suggestions to protect the tenant.
When things go wrong, or even extremely well, a commercial tenant may need an exit strategy with respect to its lease. In addition to the common remedies of assignment and subletting, it can be extremely helpful to have a termination option. In today's newsletter we discuss termination options and provide ten suggestions to make them as clear and unambiguous as possible.
With the prevalence of office leasing by technology and start-up companies and the increase of those same companies running into financial difficulties, landlords have understandably focused on obtaining protection through larger security deposits or guaranties. The marketplace has recently come up with a commercial tenant lease bond to try to address the landlords' concerns while also providing needed flexibility to tenants. In today's newsletter we discuss these lease bonds and provide seven suggestions when acting as sublandlord being asked to accept a lease bond in lieu of a letter of credit or guaranty.
When a tenant needs to sublease its space, it will likely require a security deposit from the subtenant ensuring performance under the sublease. Sophisticated tenants/sublandlords know that they will be better protected in the event of a bankruptcy of their subtenant if the security deposit is provided by a standby letter of credit. In today's newsletter we suggest thirteen requirements for any such letter of credit in order to best protect a tenant/sublandlord's interests.
Climate change or not, something is going on, whether it is super intense hurricanes such as Dorian or the rainstorm that wiped out my driveway last month.
Yet, there are still those who do not see the urgency which can be frustrating to many and particularly so to scientists.
An article from The Atlantic talked about scientists using satire to make their scientific case.
Not much in commercial leasing is more complicated to pull off than when a tenant tries to sublease from another tenant and then have that sublease convert at the end of its term into a direct lease with the landlord. There are more parties, more documents and more moving parts than in a standard transaction. In today's newsletter we provide seven suggestions to consider when entering into such a subleasing to leasing structure.
Oddly enough, I missed this year’s annual Lunar and Planetary Science Conference in Houston, but I am told that in lieu of the required one-sentence summaries to describe their work, some scientists describe the complicated science in their papers with haikus.
So instead of “The Effects of Shock and Raman Laser Irradiation on the Maturity of Organics in Martian Meteorites” (something I have dabbled in a bit myself), the haiku version is:
Tenants looking to enter into a new lease are generally required to provide financial and other proprietary information for review by their landlord, and it is common practice for such prospective tenants to impose confidentiality requirements with respect to such information. For our post Father's Day edition, we look at "dad jokes" and confidentiality agreements (a.k.a. Non-Disclosure Agreements) used to enforce such confidentiality.