Recently, David Birdsall, Chief Development Officer for Phillips Edison, spoke to a group of real estate industry executives about the state of the retail industry and its impact on retail real estate. Dave believes we are at the dawn of a new/old retail era. Dave showed how the internet is changing how consumers shop and will
Vacancy rates are up; occupancy rates are down. This spells opportunity for tenants and challenges for landlords. The instinct which once prevailed in the real estate industry was to "go for the jugular" and cut the best deal you possibly can. But real estate professionals know that today’s "tenant market" will become tomorrow’s "landlord
So by now you’ve been to at least three conferences which tell you the economy has hit the bottom, it’s a U curve, 2010 will still be slow with savings and not consumption being the key characteristic, 2011 is a comeback year, but real estate will never get back to the boom boom days of
The following clause was in a first draft of a lease I recently reviewed for a client in the boilerplate provisions at the end under the heading “Mediation.” It is reproduced here verbatim (not kidding):
“If a dispute arises out of or relates to this Lease, or the breach thereof, and if the dispute cannot
In October, 2009 Morgan Stanley published its Mall and Lifestyle Center Handbook. (Special thanks to Stephen Baumgarten, Senior Vice President Wealth Advisor Morgan Stanley Smith Barney Beachwood, Ohio for sharing the handbook with us). The handbook is a must read for all retail developers, lenders, investors and retailers to understand the market forces impacting shopping
When it comes to taking care of our own health, all too often we rely upon reactive maintenance. For example, you ignore your doctor’s warnings and continue to eat fast food and fail to exercise on a semi-regular basis. You had the chance to help control the situation with some basic preventive maintenance, but you
When representing a tenant, I always want an SNDA so that if the landlord defaults on its mortgage my client is assured that it can remain in the space as long as there are no tenant defaults.
When representing a landlord, it is becoming increasingly more difficult to get lenders to make any change
A tenant always prefers an SNDA so that if the landlord’s lender forecloses, the lender will have to respect the tenant’s lease. But if the landlord files bankruptcy, or if the lender causes the landlord to file bankruptcy, the landlord can reject the tenant’s lease anyway thereby subjecting the tenant to the very risk it
It is certainly no surprise that the commercial real estate leasing market has turned into a "tenant favorable" market. How long this will last is anyone’s guess. Give the current leasing market conditions and overall economic conditions tenants should take precautions to prevent becoming victims of their landlord’s potential financial defaults and inability to obtain
It seems like every day another retailer files bankruptcy. Many more have frozen new deals, cancelled scheduled openings and even closed open stores. A shopping center landlord must monitor tenant monthly gross sales reports and tenant public filings to anticipate which of its tenants are or could become problem tenants. The landlord should also act quickly to