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...
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...
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...
Negotiating a Landlord Warranty in a Commercial Lease
When entering into a commercial lease, one of the key considerations for a tenant is the condition of the leased premises. In most cases, the tenant takes the premises in its "as-is" condition upon delivery, meaning that defects or issues with the space may become the...
Tips for Commercial Tenants: Protecting Yourself Against Your Landlord’s Foreclosure
When negotiating a commercial lease, many tenants focus on the immediate terms—such as rent, improvements, and the length of the lease—without considering the potential impact of their landlord’s financial health. However, it’s crucial for tenants to think through the...
Quick Tip for Commercial Real Estate Tenants: Capping Controllable Costs Under a Commercial Lease
When negotiating a commercial lease, one key aspect tenants should consider is negotiating a cap on controllable costs. A cap on controllable costs limits the amount by which certain operating expenses can increase annually, providing tenants with predictability in...
Fixed Rate Extension Options: Landlords Beware
In commercial lease agreements, extension options are a common provision that allow tenants to continue occupying a property beyond the initial lease term. One specific type of extension option is the fixed rate extension option, where the rent for the extension...