commercial real estate · Malls · Retail leases · Shopping Center

Deductions and exclusions from reported gross sales

ICSC published a brief summary of a handful of timely legal issues discussed during its 50th U.S. Law Conference. Among the topics were a few percentage rent concerns. They are all relevant in the current environment and worthy of addressing the “whys” of the topics and expanding on them a bit. Before hitting those issues,… Continue reading Deductions and exclusions from reported gross sales

commercial real estate · Malls · Office Properties · Retail leases · Shopping Center

Property Management Systems Can’t Handle This Clause – And if you have them, they will be critical for 2020

We have been seeing a clause for years that is both brilliant and fair to both landlords and tenants – a CAM cap carryforward. The concept is fairly simple. You calculate and apply a cap as required by the lease. However, if there is any excess CAM that the landlord could not bill and collect… Continue reading Property Management Systems Can’t Handle This Clause – And if you have them, they will be critical for 2020

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Remember that premises services (utilities/trash) are not common area expenses!

It is not uncommon for a lease to require a tenant to pay quite a few different monthly recurring charges (minimum rent, taxes escrows, CAM escrows or fixed CAM, insurance escrows, perhaps a marketing charge, or storage, or signage to name a few) as well as certain charges to be paid or reconciled annually (those… Continue reading Remember that premises services (utilities/trash) are not common area expenses!

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The throwaway lease clause that cost more than $10m in value

You may be thinking this is clickbait. It’s not. This past week, we had a truly “throwaway” lease clause that had cost the owner more than $10m in value on the property. Not one clause in every lease at the property, but one clause in one lease. The clause – “The tenant may offset percentage… Continue reading The throwaway lease clause that cost more than $10m in value

commercial real estate · Malls · Retail leases · Shopping Center

Just how bad can that cotenancy provision be?

Coronavirus is laying bare deficiencies that exist in lease language. We are currently working on a still very successful regional mall. Its one vacant anchor is slated for redevelopment. The owner had never had a large portfolio, so did not have the benefit of seeing the evolution of lease language and, as a result, has… Continue reading Just how bad can that cotenancy provision be?

commercial real estate · Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

Stop – before you grant rent relief! Consider this!

With the number of rent relief amendments we have been processing over the last few months, it is clear that many landlords are trying to work with their tenants so that they can make it through these COVID-impacted times. The most well-respected retail landlords have always considered the tenant mix of their properties. The right… Continue reading Stop – before you grant rent relief! Consider this!

commercial real estate · Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

Looking to the future – dealing with lease related issues

Hopefully, in the next few weeks, we will be slowly but steadily getting back to a new normal. We will all be faced with the question of minimum rents during this period from both the landlord and tenant perspective. But there will be other issues we will all have to consider as we come out… Continue reading Looking to the future – dealing with lease related issues

commercial real estate · Malls · Retail leases · Shopping Center · Uncategorized

“… and the breakpoint shall be likewise abated…” – a thought about rent relief

We have seen the articles today, “Cheesecake Factory and Primark refuse to pay April rent.” Some of this is the media looking for clicks. The landlord-tenant relationship has always, out of necessity, been a symbiotic one. The economic environment at any given time may shift the “advantage” back and forth, but it really does go… Continue reading “… and the breakpoint shall be likewise abated…” – a thought about rent relief