Lease Guaranties: Understanding Their Role and Key Considerations in Commercial Real Estate Leases
A lease guaranty involves a third party, known as the guarantor, committing to fulfill the tenant's obligations under the lease if the tenant defaults. Guaranties help provide credit support for tenants that may not otherwise have the financial wherewithal on...
Understanding Casualty and Condemnation Provisions in a Commercial Purchase Agreement
One of the things that a commercial real estate purchase agreement does is allocate the “risk of loss” for the property prior to closing. Typically there is a period of time, frequently 60-90 days, but sometimes as long as a year or more, between when the...
Tenant Termination Options in Commercial Leases
Commercial real estate leases generally do not include a right for the tenant to terminate the lease early. However, in certain circumstances, a commercial tenant may negotiate with its landlord for the inclusion of an early termination option in a lease....
ROFO vs. ROFR: What’s the Difference?
When negotiating a commercial lease, many tenants seek a preferential right to lease additional space in a building. This may be because the tenant wanted additional space when signing the initial lease but such space was not available, or the tenant may simply be...
Tip for Commercial Real Estate Tenants: Negotiating a Cap on Controllable Operating Expenses
Under a commercial lease, tenants are typically responsible for various expenses associated with operating the property that are passed through from the landlord. As a result, the tenant bears the burden of increasing operating expenses, while the landlord, which is...
Tip for Commercial Real Estate Tenants: Negotiate for a Right to Make “Cosmetic Alterations”
When negotiating a commercial lease, one of the points that a tenant should ask for in nearly any lease is the right to make "cosmetic alterations" to the premises. Understanding and negotiating this right can meaningfully impact your business operations and overall...
When to Hire a Commercial Real Estate Attorney
Navigating the complexities of commercial real estate transactions can be a daunting task. Whether you are buying, selling, leasing, raising capital, negotiating loans, or resolving disputes, having a knowledgeable commercial real estate attorney on your side can be...
What are the Key Differences Between Residential and Commercial Leases?
Leases are fundamental agreements in the real estate industry, defining the relationship between landlords and tenants. While residential leases pertain to living spaces such as apartments and houses, commercial leases cover properties used for business purposes such...
What Does a Commercial Real Estate Attorney Do?
What Does a Commercial Real Estate Attorney Do? A commercial real estate attorney helps their client achieve the client’s business objectives in a risk efficient manner. An experienced real estate attorney helps a client understand what to expect with respect to a...