Understanding the Commercial Lease Letter of Intent: Key Business Terms to Address Before the Lease Is Drafted
In most commercial leasing transactions, the parties begin negotiations with a Letter of Intent (“LOI”) or term sheet before drafting a formal lease agreement. Although the LOI is usually technically non-binding, it frequently establishes the core economic and...
Commercial Lease Estoppel Certificates: Purpose, Scope, and Common Negotiation Issues
Estoppel certificates are a routine but critically important component of commercial real estate transactions. They are commonly required in connection with property sales, refinancings, and other transactions, and they serve as a mechanism for confirming the status...
What Is a Promissory Note in a Commercial Real Estate Transaction?
In most commercial real estate transactions—whether involving acquisition financing, seller financing, or capital contributions within a joint venture—the promissory note is the document that actually evidences the borrower’s repayment obligation. While loan...
Key Legal Considerations When Forming a Real Estate Joint Venture
Real estate joint ventures are among the most common ownership structures for middle-market commercial real estate acquisitions. In Massachusetts and elsewhere, these arrangements are typically implemented through limited liability companies governed by operating...
Operational Issues Industrial Tenants Should Diligence Before Signing a Warehouse Lease
Industrial tenants evaluating warehouse or distribution space often focus heavily on rental rate and square footage when selecting a facility. However, many of the operational characteristics that determine whether a facility will actually function for the tenant’s...
Rent Credits in a Commercial Lease: An FAQ Guide
Rent credits in a commercial lease are frequently misunderstood. Many people think of “free rent” at the beginning of a lease term and stop there. In reality, rent credits are broader than that. They can be negotiated concessions at lease inception, or they can...
How to Terminate a Commercial Lease – A Guide for Tenants
One of the questions we get asked most often is: as a commercial tenant, how can I terminate my lease? The first thing to understand is that, generally speaking, a commercial lease does not give a commercial tenant the right to terminate early. There is usually no...
Key Considerations in Commercial Lease Renewal and Expansion Options
Renewal and expansion options are common features in commercial leases and are often viewed by tenants as valuable tools for long-term planning and flexibility. For landlords, however, these provisions can meaningfully impact future leasing strategy, rental economics,...
A Tenant’s Guide to Negotiating Sign Rights in a Commercial Lease
Signage is often treated as a secondary issue during lease negotiations, addressed late in the process or deferred to an exhibit that receives little scrutiny. For many commercial tenants, however, sign rights are a core business concern. Visibility, branding, and...
Negotiating Tenant Improvements and Work Letters in Commercial Leases
Tenant improvement provisions are often among the most heavily negotiated sections of a commercial lease. For many tenants, the ability to customize a space to meet operational needs is critical. For landlords, controlling the scope, cost, timing, and quality of that...