Exclusives, kickouts and cotenancies are typically the big three non-financial covenants that have to be confirmed on an acquisition because, along with the cash flow of the property, they have such an impact on value. More often than not, these provisions are fairly obvious in a lease, But, sometimes they are buried. This past week,… Continue reading The “backdoored” exclusive
Site plan of King of Prussia Plaza from the early 1960s with an Acme Supermarket: Since the 1970s, it has not been common to see certain types of tenants in regional malls as department stores enforced certain types of use restrictions that existed in their leases (often to protect parking). However, as closures of former… Continue reading Gross sales/percentage rent considerations when backfilling a department store/big box
I have mentioned in prior blogs that one of the things I love about lease administration is that everything you need to know about the lease is right there in 40-50 pages of the lease (sometimes as few as 2-3 pages, but sometimes as many as 500+). But, unless there are outside rules specifically addressed… Continue reading Intelligent people will argue
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
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