SNDA Agreements for Commercial Tenants: What Actually Happens If the Lender Forecloses?
From a tenant’s perspective, this raises a practical question: what happens to the lease if the landlord’s lender forecloses? In many commercial leasing transactions, the lease will provide—either expressly or by operation of a future subordination clause—that the...
Financing Contingencies in Commercial PSAs: When a Separate Financing Out Is Worth the Fight
Many commercial real estate purchase and sale agreements provide for a single due diligence period during which the buyer is expected to complete its review of the property and either proceed to closing or terminate the contract and recover its deposit. That diligence...
Understanding the Commercial Lease Letter of Intent: Key Business Terms to Address Before the Lease Is Drafted
In most commercial leasing transactions, the parties begin negotiations with a Letter of Intent (“LOI”) or term sheet before drafting a formal lease agreement. Although the LOI is usually technically non-binding, it frequently establishes the core economic and...
What Is a Promissory Note in a Commercial Real Estate Transaction?
In most commercial real estate transactions—whether involving acquisition financing, seller financing, or capital contributions within a joint venture—the promissory note is the document that actually evidences the borrower’s repayment obligation. While loan...
Key Legal Considerations When Forming a Real Estate Joint Venture
Real estate joint ventures are among the most common ownership structures for middle-market commercial real estate acquisitions. In Massachusetts and elsewhere, these arrangements are typically implemented through limited liability companies governed by operating...
Rent Credits in a Commercial Lease: An FAQ Guide
Rent credits in a commercial lease are frequently misunderstood. Many people think of “free rent” at the beginning of a lease term and stop there. In reality, rent credits are broader than that. They can be negotiated concessions at lease inception, or they can...
How to Terminate a Commercial Lease – A Guide for Tenants
One of the questions we get asked most often is: as a commercial tenant, how can I terminate my lease? The first thing to understand is that, generally speaking, a commercial lease does not give a commercial tenant the right to terminate early. There is usually no...
Restaurant Leasing in Massachusetts: Key Issues for Landlords and Tenants
Leasing to restaurants introduces unique legal and operational challenges. Massachusetts landlords and tenants entering into restaurant leases must pay careful attention to technical, regulatory, and business provisions that extend beyond those typically encountered...
Commercial Landlord’s Guide to Letters of Credit
In virtually every commercial lease negotiation, landlords look for credit support to backstop a tenant’s obligations. Whether it is unpaid rent, repair obligations, or damages caused by tenant default, landlords want to ensure there is a readily accessible source of...
Caps and Floors on Seller Liability in Commercial Real Estate Purchase Agreements
When negotiating a commercial real estate purchase agreement, one of the most important—and often misunderstood—topics is the allocation of risk between buyer and seller after closing. While the purchase price is the headline number, the contract provisions governing...