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Land Lease: See “Ground Lease.” Landlord Approval | Landlord Consent: A situation in which a tenant must get the permission of landlord before proceeding with its course of action. Generally, situations…
morePart 1 Introduction: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter When negotiating a letter of intent (“LOI”), although it is my belief…
morePart 2 Leverage: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter Trying to take a step down from my virtual soapbox without pulling…
morePart 3 Use of the Premises: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter In an ideal world, given that having an “exit…
morePart 4 The Lease Term & Delivery of the Premises: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter Welcome back to Part 4…
morePart 5 Determining the Appropriate Lease Term: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter As the legendary actor, director and Sundance Film…
morePart 6 Base Rent & Free Rent: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter When it comes to establishing what the rent…
morePart 7 Renewal Options: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter A compelling and convincing argument can be made that the inclusion…
morePart 8 Operating Expense Escalations & Percentage Rent Increases: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter In many leases, in addition to…
morePart 9 Real Estate Tax Escalations: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter Somewhat analogous to the line by comedian Tracy Morgan…
morePart 10 Security Deposits: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter Borrowing from our multi-part series on negotiating security deposits and good…
morePart 11 Good Guy Guarantees: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter At its most basic level, a GGG is a document…
morePart 12 Loss Factors: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter As a general rule, when contrasted with the usable square footage…
morePart 13 Assignment & Subletting: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter As I have previously pointed out ad nauseam in both…
morePart 14 Electricity: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter When it comes to an electricity provision in a LOI, paraphrasing the…
morePart 15 Tenant’s Early Access: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter Playing off of the title of the song “Distant Early…
morePart 16 HVAC/Air Conditioning: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter With due props out to rock and roll legends Foreigner and…
morePart 17 Landlord’s Work: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter In a landlord’s ideal (and sometimes fantasy) world, its Landlord’s Work…
morePart 18 Tenant’s Work: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter To witness the transformation of an office or retail space from…
morePart 19 Signage & Scaffolding: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter It is my belief that a fairly decent number of…
morePart 20 Subordination and SNDA’s: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter Welcome back my leasing brothers and sisters to what I…
morePart 21 Hazardous Materials: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter From a landlord perspective, one of the many ancillary benefits of…
morePart 22 Cleaning: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter While we are on the subject of having a tenant’s become space…
morePart 23 Compliance with Law: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter In most commercial leases, landlords – in a seemingly subtle,…
morePart 24 Conclusion: Negotiating and Preparing a Letter of Intent (“LOI”) Previous Chapter Table of Contents Next Chapter It’s time my friends to put a wrap on our multi-part series…
moreOctober 3, 2018 Eddie Norton Top Landlord Broker, LLC 111 Sixth Avenue New York, NY 10003 RE: 59 Desirable Avenue – Store #1, New York, NY (“Premises”) Dear Eddie:…
moreLeverage Tenant Advocates: A tenant never has more leverage in its negotiations with landlord than during the LOI preparation and negotiation stage. Once the LOI terms have been agreed to the…
moreLandlord Advocates: Keep it narrow. Keep the LOI and any definitions as narrow as possible. This will lure the prospective tenant into the lease negotiation stage – where tenants will…
moreExamples of Use Restriction Language Notwithstanding anything to the contrary contained in this Lease, Tenant agrees that it and anyone holding through Tenant shall not use, sublet or assign all…
moreThe Lease Term & How Should It Read from a Tenant’s Perspective “Ten (10) years and eight (8) months, commencing ten (10) days after Tenant’s receipt of written notice from…
moreDetermining the Appropriate Lease Term Landlord Advocates: The longer the lease term for a secure and rent-paying tenant, the better it will generally be when they go to refinance and/or…
moreBase Rent Negotiation Landlord Advocates: Whether one prefers to call it “fixed” or “base,” landlord advocates should push for as high a rent as possible when negotiating a LOI. They should…
moreIncentivizing Tenant Renewal Landlord & Tenant Advocates: If a landlord has a reliable tenant in possession of the premises, it may be prudent to incentivize the tenant to stay and…
moreTiming is Everything Landlord Advocates: During the LOI stage, more often than not it is best to remain silent and leave it to the lease negotiation stage as to when…
more“Tenant or Tenant’s parent, affiliate, subsidiary or permitted assignee or subtenant shall have the right to renew this Lease (“Renewal Option”) at its option for two (2) additional terms of…
moreDetermining the Amount and Type of Security Deposit Landlord Advocates: Borrowing from our multi-part series on negotiating security deposits and good guy guarantees, landlord advocates need to ask themselves the…
moreSweet 16 List The strength of tenant’s Profit & Loss Statement The strength of tenant’s balance sheet Tenant’s historical track record Is it office or retail? “Think” more outlay by…
moreGood Guy Guaranty LOI Negotiating Pointers At its most basic level, a GGG is a document wherein a tenant’s principal or principals personally guarantee that all rent will be paid…
moreLegal and Business Steriods Landlord Action: Guaranty of not only Base Rent but Additional Rent Tenant Action: Given that Additional Rent is defined broadly, tenants should attempt to limit its…
moreIn many leases, in addition to a real estate tax escalation, among the more popular (or unpopular, depending on your perspective) rent escalation provisions are those which require the tenant…
moreTypically, at their most basic level, operating expenses of a building include those attributable to: Ownership, management, maintenance and operating expenses Insurance premiums and deductibles Wages, salaries and benefits of…
moreLandlord Advocates: A landlord’s operating expense definition should contain as much as possible -including the kitchen sink. With that said, Leasing REality strongly suggests that landlords add, immediately after their…
moreWhen negotiating a myriad of pro-tenant carve-outs to a real estate tax escalation clause, tenant advocates should consider being selective when doing so. Never give a landlord or anyone for…
moreBusiness Improvement District Charges: As a straight pass-through, landlords should attempt to pass any business improvement district (“BID”) charges on to their tenant based on their proportion share of same.…
moreAs a general rule, when contrasted with the useable square footage of a space, seemingly all landlords consider their space’s rentable square footage (“RSF”) calculation to be non-negotiable. Consequently, from…
more“Tenant shall have the option, exercisable by written notice to Landlord within thirty (30) days after delivery of the Premises to Tenant, to verify the gross leasable area (“GLA”) of…
moreThe Assignment & Subletting Playing Field The assignment and subletting clause is arguably the most important clause to negotiate in a lease and although a letter of intent (“LOI”) or…
moreLandlord Advocates: It would be useful to point out that a well-drafted lease provision should begin with language detailing what a landlord will need from its tenant in the event…
moreSample Pro-Tenant LOI Provisions (which fold in all or most of the foregoing leasing pointers noted in Parts 1 and 2) Subletting and Assignment “Tenant shall have the right to…
more“Tenant shall have the right to assign or sub-lease all or any portion of the Premises to a third party entity, subject to Landlord’s approval with explanation, which will not…
more“Subject to the terms and conditions of the Lease, on prior notice to Landlord accompanied by a certificate of insurance, without Landlord’s consent, Tenant shall have the right to permit…
moreWhen it comes to an electricity provision in a LOI, paraphrasing the words and wisdom of Forrest Gump, who, if negotiating a lease, very well would have said something along…
moreElectrical Capacity and Power Tenant Advocates: For office tenants, the question to be asked is whether or not the space has sufficient amperage based on your usage type. If it…
moreNegotiating Theories to Succeed in Life, Marketing and Commercial Leasing (Part 2) As a tenant advocate, it is imperative that you create exit strategies for your client as early as…
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moreTenant Advocates: Playing off of the title of the song “Distant Early Warning” by Canadian rock band Rush, it is never too early to inform the landlord of the necessity…
moreTenant Advocates: The majority of leases do not address what minimum temperature must be maintained by the building owner in the winter or what maximum temperature you must endure during the high…
moreLandlord Advocates: Ideally, a Landlord’s Work LOI provision would state that “Tenant accepts the premises “as-is”,” in order to generally: relieve the landlord of any liability as to the condition of…
moreWhen it comes to a tenant taking much more than a hammer to hang a picture frame within its premises, in the eyes of many landlords, it is their preordained…
moreIt’s our belief that part of a retailer’s job description is to show potential customers, as the silky smooth The Weeknd might croon, the “Beauty Behind the Madness” of their store. Short of being…
moreIn short, subordination is a provision requiring that a tenant’s lease be subordinate to any existing or future mortgage of landlord on the building as well as any existing or…
moreFrom a landlord perspective, one of the many ancillary benefits of only having to deliver the space to a tenant in its “as-is” condition is that effectively, the tenant will…
moreSimply stated, the LOI provision should provide whether the tenant or landlord will clean the premises, which party will pay for such cleaning, and the frequency and manner at which…
moreIn most commercial leases, landlords – in a seemingly subtle, yet relentless manner – attempt to shift the legal and financial burden of compliance with applicable laws pertaining to its…
moreThe power of the Letter of Intent (“LOI”) and the impact made by those preparing them cannot be understated. Landlord Advocates: A landlord’s mantra should be that of brevity, simplicity and…
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