Real Estate Advisor Law Blog

Real Estate Advisor Law Blog

Category Archives: Leasing Issues

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A Plea And/Or Request: Stop Using And/Or

Posted in Leasing Issues
University of Cincinnati Law Professor Sean Mangan does not hate many things, but ‘and/or’ has to be first on the list – along with whomever might be playing his Irish that weekend. I had the pleasure of taking multiple drafting classes with him several years ago, but I honestly never quite understood the depth of… Continue Reading

Life is Like a Restaurant

Posted in Construction Related Issues, Leasing Issues
I just attended the BDO Restaurant CFO Roundtable where I presented the Top 10 Most Important Legal Provisions of a Restaurant Lease. Arranged by Dustin Minton and Floyd Roades of BDO, the Roundtable brings together restaurant industry executives to learn about industry trends. BDO is the industry leader when it comes to accounting services for… Continue Reading

Relationships Matter

Posted in Leasing Issues, Retail Industry Issues
Relationships matter. Seems obvious, but not always understood. However, this past week Scott Kadish, Alex Conn and I experienced firsthand the importance of this simple principle. Last week we attended the ICSC U.S. Shopping Center Law Conference in San Antonio, Texas. For 4 days we attended educational sessions (we actually led the discussion in 2… Continue Reading

Street Food Gone Upscale

Posted in Leasing Issues, Retail Industry Issues
“Street Food” has generally referred to prepared food items ready for immediate consumption sold on the street or in a public space from a food cart, food truck or similar moveable station. The connotation was cheaper fast food. Today, “street food” is a unique, trendy selling point. There is Piada Italian Street Food that brands… Continue Reading

‘Lease’ Vegas

Posted in Leasing Issues, Retail Industry Issues
I just returned from the National Restaurant Association Financial Officers and Tax Executives Conference in Las Vegas. I participated on a Real Estate Leasing Trends panel with Adam Schwegman, head of the eat/drink department of General Growth Properties and George Galloway of Next Realty Mid-Atlantic, with Ryan Cupersmith of Ernst & Young as our moderator.… Continue Reading

A Restaurant Lease is a Unique Dish

Posted in Leasing Issues
I have previously commented about the similarity in service between a restaurant and law firm (see prior blog). One area where restaurants differ from other businesses is the issues presented in a retail lease. A restaurant lease involves unique issues which must/should be dealt with, some more monetarily significant than others. But don’t underestimate the… Continue Reading

A Lesson in Ground Leasing

Posted in Leasing Issues
So I don’t know about you, but every time I turn on NPR lately there is some discussion about President Trump’s conflict of interest because of his Washington D.C. Hotel built in the former U.S. Post Office with a ground lease from the GSA. For those of you who do not spend your days analyzing… Continue Reading

Change

Posted in Leasing Issues
I’ve been thinking a lot about that word lately. Change. I get it that change is constant and to be successful you need to embrace change. That doesn’t mean we should just accept changes that are bad. No, I think it means that we need to accept that change is inevitable and be ready to… Continue Reading

That’s Funny – I Don’t Care Who You Are

Posted in Leasing Issues
Allen Klein said that humor cannot change a situation, but it can change your attitude about it. I am working on a lease where I represent a restaurant tenant against a well-known, national REIT landlord. Needless to say, the landlord’s form lease is crazy-long and overly one sided, and the landlord is not very flexible.… Continue Reading

A New Cycle?

Posted in Leasing Issues
It seems like lease issues come in cycles: seemingly out of nowhere, a particular issue that may have never been a concern on previous leases arises suddenly only to disappear once again. Is the rise to prominence of a certain issue indicative of something larger at play? Here are the issues I seem to be facing… Continue Reading

It’s the Law

Posted in Leasing Issues
I have been told this is a Real Estate Law Blog and that it might be time to blog about real estate law for a change. I know wine and grilled cheese donuts may be more interesting, so bear with me while I transgress. I just attended and spoke at the International Council of Shopping… Continue Reading

Donuts Aren’t Just For Breakfast Anymore

Posted in Leasing Issues
I am attending the Tom + Chee franchisee convention to explain how we can help the franchisees in securing satisfactory leases for their new locations. Tom + Chee is a fast growing franchise with approximately 40 stores open. There should be one near you or coming to a location near you. Tom + Chee obviously… Continue Reading

Weakest Link in the Chain

Posted in Development, Development Issues, Leasing Issues, Retail Industry Issues
Leasing space to a restaurant chain is very desirable for a shopping center landlord. Name recognition attracts people to the center and a chain typically has better financial resources. So, the landlord starts out saying “I want a Cheesecake Factory, Cooper’s Hawk, Tom & Chee…fill in the blank, at my center.” Then during lease negotiations,… Continue Reading

What I Learned Today

Posted in Leasing Issues
I just attended the Advanced Commercial Lease Institute at Georgetown University Law Center. The Institute “brings together the brightest minds in the commercial leasing industry” to discuss “the most up-to-date and pressing subjects faced by commercial leasing attorneys.” Attendance is by invitation only and limited to those with at least 10 years of leasing experience.… Continue Reading

Not Just My Kids Who Need (Want) Larger Allowance

Posted in Leasing Issues, Uncategorized
The new IRS repair regulations can impact how tenant allowances are structured. Traditionally, landlord and tenants have relied on the Section 110 safe harbor so that provided the allowance is spent on leasehold improvements, the allowance is not taxable to the tenant and the landlord depreciates the leasehold improvements over 39 years. Under the repair… Continue Reading

Strip Mall Deja Vu !

Posted in Leasing Issues, Retail Industry Issues
 Fortune Magazine  recently published an article relating to a conversation with the CEO of Kimco Realty, Dave Henry.  Henry makes some very compelling arguments as to why strip malls and brick and mortar retail in general is here to stay for a while and why the population demographics will continue to provide ample support. Henry… Continue Reading

Need Allowance for Allowance

Posted in Leasing Issues
Landlords and their lenders need to rethink their position on payment of construction allowances. The rental structure of a lease is based in part on the amount of the allowance. If a tenant receives no allowance, the lease would undoubtedly provide for a lower rent payment. A portion of the rent is repayment of the allowance… Continue Reading

Five Points to Consider When Leasing Construction Equipment

Posted in Construction Related Issues, General Business Issues, General Legal Issues, Leasing Issues
    As the construction industry starts to rebound from a down market, rentals of project equipment are on the rise. Whether you are an owner, principal contractor, or specialty trade subcontractor, you may very well be renting equipment for use on an upcoming project. Here are five important points to bear in mind:  … Continue Reading

Change the Locks !!!!

Posted in Leasing Issues, Legislative Update
The Illinois General Assembly has recently amended the Landlord and Tenant Act   to add a new requirement for landlords:  when a unit changes over to a new tenant the locks must be changed or rekeyed.  This applies to dwelling units only.  The Act is not applicable for dwelling units in a building of 4 units… Continue Reading

The Best Real Estate Advice a Small Business Will Ever Receive

Posted in Leasing Issues
I may be over-selling this post a bit, but not by much. There’s no doubt for most small businesses and start-ups that the first, and perhaps only, real estate transaction the firm will enter into is a commercial lease. Whether it is for a retail store, manufacturing or studio space, or a restaurant, there are a few… Continue Reading

Green Leasing Unveiled – Part II

Posted in Environmental Issues, Green Energy Issues, Leasing Issues
In Part I of our series on the particulars of Green Leasing, we discussed Lease Term and Operating Expenses. Now we turn to a robust area for implementing sustainable processes between Landlords and Tenants: Interior Alterations and Repairs   A typical commercial lease will have two separate sections, one on maintenance and repairs, and one on… Continue Reading
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