What is a Security Deposit Burn Down in a Commercial Lease?
In commercial real estate leasing, security deposits serve as a critical risk mitigation tool for landlords. Unlike residential leases, where security deposits are often limited by law, commercial landlords have significant discretion in setting the amount and...
Negotiating the definition of “Gross Sales” for Purposes of Calculating Percentage Rent in a Retail Lease
Negotiating the definition of sales, often referred to as "gross sales," is an important consideration for retail tenants who are subject to percentage rent provisions. Percentage rent is a form of additional rent calculated based on a percentage of the tenant's...
A Tenant’s Guide to Estoppel Certificates
When a landlord requests an estoppel certificate, commercial tenants should approach the document with caution and understanding. While an estoppel certificate is not intended to modify a lease, it can significantly impact a tenant's future rights and claims. This...
An Introduction to Operating Expenses in Commercial Leases
Introduction Operating expenses (OpEx) in a commercial lease can significantly impact a tenant’s total cost of occupancy. While base rent is typically a fixed expense, OpEx is often variable, unpredictable, and largely outside the tenant’s direct control....
A Guide to Negotiating a Permitted Use Clause in a Commercial Lease
A permitted use clause in a commercial lease defines and limits the type of business a tenant can operate within a leased premises. This clause serves as a critical point of negotiation between landlords and tenants, with significant implications for tenant mix,...
Tips for a Commercial Landlords Dealing with Abandoned Tenant Property in Massachusetts
Commercial landlords in Massachusetts may occasionally find themselves dealing with property left behind by tenants who have vacated their premises, either voluntarily or through eviction. While it may seem straightforward to remove and dispose of these belongings,...
What is the Significance of Signing a Commercial Lease ‘Under Seal’ in Massachusetts?
Massachusetts law contains certain legal traditions that may be unfamiliar to individuals and businesses from other states. One such unique aspect is the concept of signing a document "under seal" - whether or not a physical seal is actually used. While the use of...
Escrow Provisions in a Commercial Purchase and Sale Agreement
A commercial real estate Purchase and Sale Agreement ("PSA") typically requires the buyer to make a good faith deposit concurrently with or shortly after signing the agreement. This deposit plays an important role in the transaction. Typically the deposit will...
Negotiating Access Rights in a Commercial Real Estate Purchase Agreement
In a commercial real estate transaction, the Purchase and Sale Agreement (PSA) typically grants the buyer the right to access the property during a defined due diligence period. This period allows the buyer to inspect the property’s condition and discover any...
The Importance of the Property Description in a Commercial Real Estate Purchase and Sale Agreement
One of the most critical—and often underestimated—aspects of a well drafted commercial purchase and sale agreement (PSA) is the property description. Far beyond simply outlining the parcel of land, a comprehensive property description serves as the blueprint for what...