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...
Death and Disability / Key Person Provisions in a Commercial Lease
In certain commercial leases, particularly for businesses that are heavily reliant on the expertise or presence of a specific individual, the tenant may negotiate for the inclusion of a death and disability or key person provision. Such a provision is designed to...
CASp Provisions in California Commercial Real Estate Leases
In California, commercial real estate leases must include specific language allowing a tenant to request an inspection of the premises by a Certified Access Specialist (CASp). This requirement, established under California Civil Code Section 1938, took effect in 2017...
Estoppel Provisions in Commercial Real Estate Leases
Commercial leases generally provide landlords the right to request an estoppel certificate from a tenant at certain times or under certain circumstances. An estoppel certificate is a signed statement by a tenant that certifies the accuracy of certain facts about...
Tenants’ Obligation to Provide Financial Information Under a Commercial Lease
Commercial leases frequently include an obligation for the tenant to provide financial information to the landlord upon request. These provisions serve as a means for landlords to assess the financial health of tenants and any guarantors, which is crucial for managing...
Signage Provisions in Commercial Leases
Signage provisions are frequently an important component of commercial leases, particularly in retail environments where visibility and brand recognition play a critial role in a tenant's success. The signage provisions in a lease outline the terms under which tenants...
Consequential Damage Waivers in Commercial Leases
In the realm of commercial leasing, the allocation of risk and liability is a central concern for both landlords and tenants. One critical aspect of this negotiation is the treatment of consequential damages—a category of damages that can extend beyond the direct,...