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

Malls · Retail leases · Shopping Center · Uncategorized

Common area taxes and liability insurance

In the majority of retail leases (and in a smaller portion of office leases), we have sections in the leases that address how to calculate the tenant’s prorata share of real estate taxes as well as tenant’s share of property insurance. This can be a little confusing if you do not read leases regularly because… Continue reading Common area taxes and liability insurance

Malls · Retail leases · Shopping Center · Uncategorized

Percentage rent using different partial year methodologies

Percentage rent is where a tenant pays a percentage of its sales once it has exceeded a certain base level of sales. The better a tenant does, the better the landlord does. If the tenant does not exceed the base level of sales, or the breakpoint, the landlord does not receive percentage rent. In most… Continue reading Percentage rent using different partial year methodologies

Malls · Retail leases · Shopping Center · Uncategorized

Retail evolution and the need for lease language changes

Experiential retail. Bricks and mortar stores as distribution points. Online sales returns. Showrooming. We are continuously bombarded with articles about the death of retail, the evolution of retail, stores closures, the death of retail being exaggerated, announced stores closings, announced store openings. While there seems to be little agreement about the future of retail, there… Continue reading Retail evolution and the need for lease language changes

Malls · Retail leases · Shopping Center · Uncategorized

The most dreaded lease clause – Most Favored Nations

This week, I was working on an office acquisition and came across a clause I had never seen applied in office before – a most favored nations clause. The clause essentially read: Notwithstanding anything in the lease to the contrary, no other tenant in the Property shall have a more favorable rental rate (which was… Continue reading The most dreaded lease clause – Most Favored Nations

Malls · Retail leases · Shopping Center · Uncategorized

Extracting value from an exclusive

There is no question that a tenant benefits from being granted an exclusive use in a shopping center. More often than not, an exclusive ensure that no other tenant in the shopping center shall have the same use as tenant granted the exclsuive. (Occasionally, an exclusive shall read something to the effect of “There shall… Continue reading Extracting value from an exclusive