Lease Modification Must Be in Writing
Facts: A women’s clothing manufacturing company rented space in an office building. The chief executive officer of the company signed the lease on behalf of the company, gave a security deposit, and...
View ArticleDeadline for Repairs Not Extended by Appeals Process
Facts: For 30 years, a fitness center leased space in a shopping center under a series of leases. After a fire damaged the center, the center’s owner made some repairs and asked the tenant to resume...
View ArticleDetermining Restoration Responsibility Before Making Alterations
Q: Is the tenant typically responsible for removing the alterations it made during the lease, or is this negotiable? How much I spend on alterations now will depend on whether I’m going to have to pay...
View ArticleModify Radius Clause to Protect Right to Expand Beyond Center
Including a radius clause—that is, a clause barring you from opening another store within a certain distance, or radius, of your existing location—in a percentage rent retail lease is common. Owners...
View ArticleIconic Tower Sale Bolstered by Healthy Tenant Roster
Houston’s CRE market continues to show its strength as one of its iconic buildings goes up for sale. The landmark skyscraper, Williams Tower, is owned by a subsidiary of the Hines Real Estate...
View ArticleTenant's Security Deposit Not Credited to Unpaid Rent
Facts: A real estate company rented a corner store and partial basement of a building for a 10-year lease term. The tenant paid $42,000 as a security deposit. Two guarantors also signed separate...
View ArticleOutbuildings Not Included in Lease's Maintenance Requirement
Facts: An employee of a truck rental company tenant sued the property’s owner for negligence, after the employee injured his back when he stepped into a hole in the floor of a tire “shed” that was on...
View ArticleOwner's Misrepresentation Justified Lease Termination
Facts: A fast-food restaurant signed a five-year lease with the owner of a building that had been used previously for a similar restaurant. Under the lease, the owner represented and warranted to the...
View ArticleGive Heed to Five Commonly Overlooked Lease Clauses
Understanding the terms of a lease you’re negotiating can be overwhelming, especially if it’s the first time you’re renting commercial space. It’s important to focus on carving out your rights for...
View ArticleAddress Eight Key Areas in Recapture Profit-Sharing Clause
The opportunity to sublet or assign all or part of the office building or retail space you rent is crucial. It’ll give you the option of moving out of the space if you need to and halt paying rent...
View ArticleProof of Lack of Notice of Icy Condition Required
Facts: The employee of a fish market that rented the ground floor in a commercial building slipped and fell on ice on the sidewalk outside the store. He sued the owner of the building and the tenant....
View ArticleTriple Net Lease Shielded Owner from Liability
Facts: An appliance store leased a building and parking lot “as is” from the owner under a triple net (NNN) lease—that is, a lease in which a commercial tenant is responsible for maintaining the...
View ArticleLimiting Scope of Indemnity Clause
Q: The owner of the space I’m considering renting for my retail business wants me to pay for any damage that I cause to the space and be responsible for accidents or injuries that happen there. But it...
View ArticleHow to Negotiate Adequate Casualty Provisions
By Alan M. Cohen, Esq. To get access the Insider's complete archive of feature articles, court rulings, and model lease clauses, please log in or subscribe for a membership to view the full content:...
View ArticleAppeals Court Overturns Jury Verdict in Slip-and-Fall Case
Facts: A business owner slipped on a puddle of oil on the floor of the warehouse space he rented. He sued the trust that owned the property and the trustee (the defendants) for negligent maintenance of...
View ArticleTenant Had Ownership of Rooftop Sign
Facts: An owner and a tenant disagreed about which party owned the outdoor advertising sign on top of the building. The owner asserted that the sign is an “improvement and appurtenance” to the building...
View ArticlePay Accurate Share of Taxes
Paying your share of your office building or shopping center’s property taxes during your term is fair and reasonable. After all, paying property taxes is no different from paying your share of other...
View ArticleSet Limit on Management Fee Pass-Through
Your office building or retail space’s owner, like many others, could try to collect its management costs by charging a management fee—that is, a fee that reimburses the owner for the costs it incurs...
View ArticleOwner Not Responsible for Third-Party Disturbance of Tenant
Facts: A shopping center tenant rented space to operate a nightclub. There was an unfinished office building across the street from the center, which the center’s owner told the tenant would be...
View Article"Out-of-Possession Landlord" Not Obligated to Make Repairs, Maintain Premises
Facts: A restaurant tenant’s employee required surgery for a broken wrist that he suffered in a slip-and-fall accident on a spiral staircase, used to access the employee locker room. The employee...
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