Legal/Compliance

An expansion option can be a valuable lease right for a growing commercial tenant, but it can also restrict a landlord’s future leasing flexibility. If you own, manage, or invest in commercial property, you need to understand how this clause works before you agree to reserve future space. An expansion option gives a tenant some…

An exclusivity clause can protect a tenant’s business model, but it can also limit a landlord’s future leasing options. In retail and mixed-use properties, this clause may determine which tenants can operate in the same center, what products they can sell, and how much flexibility the landlord has as the market changes. If you are…

A co-tenancy clause can turn one retail vacancy into a much larger financial issue. If an anchor tenant leaves, occupancy drops, or a required tenant mix is not maintained, other tenants may gain the right to pay reduced rent, delay opening, or even terminate their leases. That makes co-tenancy language especially important in shopping centers,…

Base year rent is one of those commercial lease concepts that can look simple during negotiation but become expensive later. If you are reviewing an office lease, mixed-use lease, or modified gross lease, the base year language can determine who pays when operating expenses increase. The phrase is sometimes used loosely, so it helps to…

Assignment and subletting provisions can seem like routine lease language until a tenant wants out, sells its business, downsizes, expands, or brings in another occupant. At that point, the clause becomes one of the most important control points in the lease. If you own or manage rental property, especially commercial property, you need to know…