Why Are Landlord and Tenant Indemnity Obligations Different in a Commercial Lease?
Indemnity provisions are an important component of commercial lease agreements, defining the extent to which each party is responsible for damages, claims, and liabilities arising from incidents related to the leased property. In essence, an indemnity provision is a...
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...
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....
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...
What is a Must-Take Provision in a Commercial Lease?
In the world of commercial real estate leasing, flexibility and forward planning are key considerations for both landlords and tenants. One of the provisions that can help address a tenant's future space needs while providing a landlord with a committed tenant for...
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...
Gross Sales Reporting in a Retail Lease
In a retail lease, where the tenant is paying percentage rent, the gross sales reporting provision plays an important role. These provisions outline the tenant's obligation to report their sales revenue to the landlord on a regular basis and it is this sales...