True Confessions of a Landlord’s Counsel: Designing and Planning the Tenant Space (Part 9)

Part 9: A tenant’s first task in planning the build out of its premises is identifying its team.  This team can consist of one or a number of consultants, which include space planners, architects, engineers and contractors.  The first step the tenant should take in considering its team is determining what the Landlord has to offer, and/or requires, with respect to these professionals. It is not uncommon when leasing space in a new building that the landlord will have one [...]

By |2019-06-07T09:37:58-07:00May 22, 2019|Commercial Real Estate|

The Implied Covenant of Good Faith and Fair Dealing

The landlord and tenant relationship should be based on the idea that both parties want to profit and succeed. In fact, the California Supreme Court in 1942 opined that neither party shall do anything which will have the effect of destroying or injuring the right of the other party to receive the fruits of the contract. See Universal Sales Corp. v. Cal. Etc. Mfg. Co., 20 Cal.2d 751, 771 (1942). Consequently, no landlord should be allowed to drive its tenant [...]

By |2019-01-31T17:48:26-08:00February 8, 2019|Commercial Real Estate|

True Confessions of a Landlord’s Counsel: What a Commercial Tenant Needs to Know When Negotiating a Lease (Part 8)

Part 8:  Building Out the Tenant’s Space.  Though it is not uncommon to have “turn-key” situations when leasing commercial space (i.e., where the premises does not need to be remodeled by the landlord or tenant prior to the tenant moving in), more often than not a tenant’s new space will not be perfect for its business and the tenant will want, at the minimum, some cosmetic improvements (new floor covering, painted walls and ceiling tiles replaced) or anywhere up to [...]

By |2019-01-31T19:56:51-08:00December 14, 2018|Commercial Real Estate|

True Confessions of a Landlord’s Counsel: What a Commercial Tenant Needs to Know When Negotiating a Lease (Part 7)

Part 7:  Additional Rent – Common Area Maintenance Costs. Common Area Maintenance costs (generally known as “CAM”), should be one of the most negotiated areas of a commercial lease as so many factors and positions come into play which will vary according to the make-up of each commercial project.  A tenant needs to be wary that its Landlord is not using CAM costs as potential profit center for the management, operation and maintenance of its commercial project.  Likewise, a tenant [...]

By |2019-01-22T00:22:08-08:00September 21, 2018|Commercial Real Estate|

Recapture Provisions and Repurchase Options

Larger retail projects are developed with anchor tenants or big boxes in mind.  Assume for the moment that you have plans for a grocery store surrounded by small shop tenants, and you have yet to decide if you are going to sell or lease the parcel to the grocery store.  Your site plan and your marketing focus on the vehicle and pedestrian traffic that will be attracted to the center because of the grocery store.  The shop tenants want to [...]

By |2018-09-27T21:47:26-07:00August 24, 2018|Commercial Real Estate|

True Confessions of a Landlord’s Counsel: What a Commercial Tenant Needs to Know When Negotiating a Lease (Part 6)

Part 6:  Additional Rent – Insurance. Insurance is one of the three major categories of Additional Rent in commercial leases which are generally passed through to the tenant, the other two being Taxes and Common Area Maintenance Expenses (they are also the three pass-through categories that coin the phrase “triple net lease”). The insurance section of any commercial lease is usually the section where most tenants’ eyes begin to glaze over when they come across terms like “indemnity” and “waiver [...]

By |2018-08-09T23:34:46-07:00June 29, 2018|Commercial Real Estate|

What is a Retail Center?

During my career as a commercial real estate attorney, I have been amazed at the changes that have happened in the shopping center industry.  Who would have thought that a church, massage parlor, gym, church, vape shop, used clothing store and dentist could be the prime tenants in a shopping center?  A review of the many shopping center forms in my file, though, caused me to reconsider the nature of a shopping center and the typical requirement that it [...]

By |2018-07-12T19:58:41-07:00June 1, 2018|Commercial Real Estate|

True Confessions of a Landlord’S Counsel: What a Commercial Tenant Needs to Know When Negotiating a Lease (Part 5)

Part 5:  Additional Rent - Taxes. Substantially all the amounts that make up “Additional Rent” fall into three major categories: Taxes, Insurance, and Common Area Costs.  In this part we will focus in on Taxes.  In most commercial leases a landlord will want to pass through to each of its tenants their fair share of all the real property taxes and assessments that are billed by the local county assessor’s office against the legal parcel of land on which the [...]

By |2018-04-12T19:06:44-07:00April 6, 2018|Commercial Real Estate|

Waterfront Property and the Public Trust Doctrine

Many people I know dream of owning that waterfront property that benefits from a beautiful sunset over the ocean, lake or river.  In fact, a client recently inquired about a great waterfront hotel site, and he was somewhat taken aback when I asked about the implications of the public trust doctrine.   For those of you who have not studied Roman and English common law, this doctrine applies to all properties that were submerged or were tidelands (lands between mean high [...]

By |2018-04-10T18:34:21-07:00March 9, 2018|Commercial Real Estate|

True Confessions of a Landlord’s Counsel: What a Commercial Tenant Needs to Know When Negotiating a Lease (Part 4)

Part 4:  Additional Rent. Additional Rent is a collection of all the various costs of operating a building and its surrounding property that a landlord charges a tenant, in addition to the “Base Rent” that the landlord charges for space within its building.  Most commercial leases generally fall into one of two major categories, “triple net leases” or “gross leases”.  The major difference between these two forms of lease is the manner in which they pass through to the tenant [...]

By |2018-01-20T00:45:33-08:00January 12, 2018|Commercial Real Estate|
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