While my inner punk rocker smiles at the term, the Damage and Destruction clause in any office lease is no laughing matter.  Although seldom used, it can be the most serious provision in a lease if a major destructive event (Fire, Flood, Earthquake, etc.) affects the occupancy of a building. While many tenants have never had...Read More

What happens at the end of a commercial lease when the tenant cannot move out in time?  Clearly there are huge differences compared with a residential lease where the tenant can have very beneficial rights by statute.  On the flip side, most commercial leases contain a provision entitled “Holding Over” to address a tenant overstaying its lease term....Read More

“You don’t get what you want, you get what you negotiate”   We have all heard the phrase, but do we always heed its advice?  Many leasing transactions are done with the thought that the initial tenant improvements will be adequate for the lease term, and they usually are.  But what happens when your business requirements change and...Read More

Sometimes I sit down to write a blog thinking that I will just wax poetic about real estate and inspire myself or somebody else to come up with a great idea on how to better transact real estate.  Then the hard part comes.  Ideas, time to write, finding some interesting pictures (got to have them…)...Read More

Well, if your like many tenants these days you may want to bring your bathing suit to the next lease negotiation meeting… Most Full Service Gross, or “Base Year” leases used to combine all of the operating expenses (including taxes, insurance and utilities) into one expense “pool” and the tenant would be responsible for any...Read More

Tenants “renew” leases all the time, but almost always outside the legal bounds of the renewal right in their lease.  Technically, most tenants negotiate a “lease extension,” as opposed to “renewing” the lease.  As a matter of fact, I have been in the business for almost a quarter century (Did I just say that?  Ouch!),...Read More

Assignment and Subleasing Below are some simple rules to live by when negotiating sublease and assignment rights from Gregg Pasternak: The Assignment and Subleasing clause is one of the most heavily negotiated in the Lease. Although most tenants do not expect to effectuate a transfer during their lease term, many do end up needing to...Read More

My good friend Gregg Pasternak tells us why we need audit rights in our leases, how they work, and how they should be structured.  I particularly like his opening line: “Operating Expense Audit Rights are Like Nuclear Weapons” You don’t want to use them, but it’s nice to know you have them, just in case.  ...Read More

It is amazing to me how many times I have represented tenants who would prefer to remain in their current location only to find that their landlord wants to “hold them hostage.”  What do I mean by this?  Well, most landlords are pretty smart and they understand how expensive it is for a tenant to...Read More

Many tenants are large enough in an office project to warrant asking for a building top or monument sign.  Just like retail tenants expect, this signage can drive new business or enhance the brand of the company.  In either case the negotiation of the signage rights requires a detailed examination of the situation.Read More