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...
What is a Choice of Law Provision in a Commercial Real Estate Purchase Agreement and Why is it Important?
Although it may appear to be boilerplate language, the choice of law clause plays a practical role in shaping how a purchase agreement is interpreted and enforced. For both buyers and sellers, identifying the governing law in advance can reduce procedural...
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...