Malls · Office Properties · Retail leases · Shopping Center · Uncategorized

Negotiate your leases wisely!

In any given year, we (my company, Meridian Realty Consultants) will read and abstract 8-10,000 leases. We get to see what landlords and tenants spend their time negotiating. It is not uncommon for someone in the office to say, “Can you believe someone took the time to negotiate this?” It might be something as simple… Continue reading Negotiate your leases wisely!

Malls · Retail leases · Shopping Center · Uncategorized

“… the breakpoint shall likewise be abated…”

“… the breakpoint shall likewise be abated…” This clause is almost a throwaway clause – one landlords and tenants give much consideration to – and it is the majority of retail leases. So, what does it mean? If the tenant is struggling, and the landlord agrees to reduce minimum rent by 50%, then the “breakpoint… Continue reading “… the breakpoint shall likewise be abated…”

Office Properties · Uncategorized

Office leases – Are taxes part of operating expenses?

The short answer? The lease should specifically address whether taxes are reconciled as part of operating expenses or are reconciled separately. But, why should this matter? This week, we were working on an office tower acquisition in the southeast. The majority of the leases had the typical “tenant pays a proportionate share in excess of… Continue reading Office leases – Are taxes part of operating expenses?

Malls · Retail leases · Shopping Center · Uncategorized

Co-participation and similar obligation

It is not uncommon to have co-participation clauses in retail leases – a clause which states that a tenant will be obligated to pay a certain charge at a specific rate with annual increases to that charge, but “only if at least 70% of the other tenants are similarly obligated to pay such charge.” The… Continue reading Co-participation and similar obligation

Malls · Retail leases · Shopping Center · Uncategorized

Retail – the fatalists and the opportunists

This past week, Sears announced another 42 closures. As usual, we see even retail real estate executives posting or re-posting about the “Dying Retail Sector.” But, what I see regularly, not from these fatalists, is successful real estate companies take a different approach – “How do we take advantage of these opportunities?” One particular client… Continue reading Retail – the fatalists and the opportunists

Malls · Retail leases · Shopping Center · Uncategorized

So a cow walks up to a drive thru… Operating hours and liquidated damages

This week’s (and next’s) post will be a bit shorter as I am in India with my son. This picture reminded me of Chick-fil-a which reminded me of a clause I ran across earlier in the week. Most retail leases have operating hours requirements which provide for default if the tenant does not maintain the… Continue reading So a cow walks up to a drive thru… Operating hours and liquidated damages