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

Unique remedy language in the event of a violation

The majority of national and regional tenant leases contain some sort of tenant-negotiated restriction. It may be an exclusive use, or a specific prohibited use in the center (no educational facilities), or a site line restriction, or a restriction against a type of use within x feet of the premises (no food uses within 200’… Continue reading Unique remedy language in the event of a violation

Malls · Retail leases · Shopping Center · Uncategorized

A few more issues related to excluded area contributions

Last week we addressed a few of the issues to consider related to excluded area contributions, but two properties that we worked on this week made me realize I missed discussing two very significant issues – refunds/credits and recaptures as they relate to excluded area tenants. At one of the properties, an excluded area tenant… Continue reading A few more issues related to excluded area contributions

Malls · Retail leases · Shopping Center · Uncategorized

Excluded area contributions

When a tenant pays a prorata share of taxes or CAM, there are often defined excluded areas. Most typically, those defined excluded areas are either directly assessed, self-maintaining or insured, or are paying at a rate significantly less than full prorata. By defining those areas as “excluded areas,” the landlord reduces it absorption of CAM… Continue reading Excluded area contributions

commercial real estate · Retail leases · Shopping Center · Uncategorized

Real estate tax timing issues

When reconciling operating expenses, timing is often pretty straightforward. The tenants make monthly escrow payments throughout the year. The landlord reconciles the calendar year and applies those payments. An additional billing or credit is applied to a tenant’s account. However, taxes are a different story. While some municipalities bill taxes for calendar years, many bill… Continue reading Real estate tax timing issues

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

Prior defaults

This past week, we worked on a 40 tenant open air center acquisition. Often times, a seller severely restricts the information provided to our clients, the buyers. Fortunately, this time, we had almost free access to the seller’s files. Many of the leases were leases that had been amended and extended 3,4,5 times since their… Continue reading Prior defaults