Leasing Illustrated

Oct
01
2021
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.
Aug
27
2021
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.
Jul
30
2021
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.
Jul
02
2021
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.
May
21
2021
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.
Apr
23
2021
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.
Mar
26
2021
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.
Feb
26
2021
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.
Jan
29
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.
Jan
08
2021
Most leases require that the tenant surrender its premises at the end of the term in good condition (subject to ordinary wear and tear), with the tenant's alterations and personal property removed and any damage from such removal repaired. Tenants need to limit such obligations to ensure that they do not end up responsible for readying a space for the next tenant when this work should be the obligation of the landlord. In today's issue, we provide six removal / restoration suggestions to cover when you reach the end of your lease term.