Although sadly nothing in life is free, commercial leases often include "free rent", i.e., a rent abatement provision. This tenant incentive is an important part of the financial package that may be provided to commercial tenants and how it is structured can have financial implications for a tenant's lease. In today's issue, we provide six suggestions for commercial tenants when negotiating a rent abatement.
Tenants are obligated under their leases through the expiration date. If a tenant has outgrown its space or needs to downsize, it is often left with subleasing as its only exit option. But sometimes an opportunity can arise to surrender a problem lease prior to the stated expiration date and be a win-win for both tenant and landlord. In today's issue, we provide eleven suggestions for commercial tenants when negotiating a lease surrender agreement.
Tenants are sometimes afforded the exclusive right to operate a particular business. Although more common in shopping centers where the tenant mix is important for all parties, the issue can arise in street level leases and even office leases. In today's issue, we provide six suggestions for commercial tenants when negotiating an exclusive use provision.
Vive la France and congrats to Les Bleus on winning the World Cup, said to be the most widely viewed and followed sporting event in the world, surpassing the Olympics, and perhaps even an April afternoon game between my NY Mets and the Miami Marlins. With no national team in the hunt, Americans have been rising early and bleary eyed for morning breakfast and “futball” without a clear rooting interest.
A tenant entering into a long term lease of ten or fifteen years does not have a crystal ball to assess its future space needs and there are countless reasons why a termination right can prove beneficial. The tenant may outgrow its current space and prefer to end its obligation rather than become a sublandlord. Alternatively, the tenant’s business may shrink and it may need to downsize.
Although most commercial leases do not include a specific landlord default provision, recently we have seen a number of leases which provide long notice and cure rights for landlord defaults. As written, some even require tenants to waive valuable enforcement remedies. In today's issue, we provide seven suggestions for commercial tenants when addressing landlord default provisions.
Swing space is alternate, temporary space which can allow a tenant to solve a short-term space and timing problem and allow its landlord to close a deal that might have otherwise been lost. In today's issue, we provide ten suggestions for commercial tenants when addressing swing space in a lease or license.
New York State has over the years developed a handy equitable safety net for commercial tenants, allowing the filing of an action for a declaratory judgment and a "Yellowstone" injunction that stays the time to effect a cure of a lease default. A recent case, however, has upheld a landlord's right to effectively require a tenant to waive its right to obtain such an injunction and this raises the possibility that future commercial leases in New York State will include such waivers.
In today's issue, we provide three suggestions when presented with a lease which requires that a tenant waive its right to file a Yellowstone injunction.
Most leases allow tenants to transfer their lease without landlord consent in the event of a bona fide corporate transaction (e.g., a merger or sale). But the language of many lease assignment and subletting provisions can be ambiguous in this regard, causing a headache for those involved in such transactions.
In today's issue, we provide five suggestions when reviewing a lease portfolio to determine assignability.
Some lease disputes require quick resolution and, in those instances, running to court may not be a helpful option for a tenant. Expedited arbitration affords tenants a speedier option to resolve disputes. In today's issue, we provide eleven suggestions to protect tenants when preparing an expedited arbitration provision.