Owning and managing a commercial property, or advising a client who owns such real estate, can be very complicated. Many rules, restrictions, and regulations apply to these properties. Therefore, formulating a commercial lease that benefits the owner, while also keeping the commercial tenant satisfied, can be a tricky juggling act.

Commercial Lease Law Answer Book is designed to clarify typical-and not-so-typical commercial leasing issues, highlighting your advantages, and turning other owners' experiences into cautionary tales you can learn from.

Created with the user in mind, Commercial Lease Law Answer Book is formatted in a question-and- answer format that covers a wide range of issues.

It offers advice on how to handle issues such as:

• Construction – covering phased developments, work letter agreements, and scaffolding
• Environmental Issues - going "green", monitoring indoor air quality, and PLL insurance
• Financial Issues – Covering asset protection (including the difference between LLC's and LPs)
• Guarantors and Guaranties - with an explanation of the "good-guy" guaranty
• Use and Exclusives – new question and answers on the use of landlord leasing and covenants and a Model Lease Clause
• Termination and Eviction – A discussion on the kick-out right.
• Rent – Rent Abatement and NEW Model Lease Clauses:
• Plus, Disputes, Liability, Risk Management, Rights and Renewals, Insurance, Option and Leasing space to special tenants.
• And much more!

Written in simple, straightforward language, Commercial Lease Law Answer Book contains proven strategies and clearly explains the many rules and regulations you need to consider when drafting a lease, such as:

• How you should respond to a tenant demanding to be excluded from CAM costs in a phased development
• What to include in an indemnification agreement
• How an "equity strip" works
• What types of indoor air quality responsibilities you can delegate to the tenant
• How to give a start-up business a rent credit without jeopardizing your interests
• What you should consider when leasing space to a law enforcement agency
• And much more!

This easy-to-use reference also includes practical pointers, real-world examples, and model lease clauses and language that will help formulate a commercial lease that benefits the owner, while keeping tenants satisfied.

Commercial Lease Law Answer Book gives advice that can save managers and property owner's money and time while increasing operating efficiency, making Commercial Lease Law Answer Book a must-have in any commercial property professional's library.

Table of Contents

Preface

Chapter 1: Construction

• Phased Developments
  Detail Layout, Boundaries, Construct As Shown, and Parking Demands
  Owner Develop Entire Center and Pursue Construction to Completion
  Construction Interfering with Tenant's Business
  Construction-Related Claims, Condition of Center, CAM Costs
  Tenant's Exclusive, All Phases, and Entire Center Issues
• Definition of 'Vanilla Box'
• Contractors and Subcontractors
  Model Letter: To Tenant to Avoid Liability for Contractor's Mistakes
• Tenant's Buildout and Expansion Option
  Model Lease Clause: Contractors
• Tenant Improvement Allowance (TIA)
  Model Lease Clause: Conditions for Financing Tenant Improvements
  Limits on Costs Covered by TIA
  Model Lease Language: Limiting Soft Costs
  Tenant Does Not Assign Right to Improvement Allowance
  TIA Not Intended for Future Improvements
• Pre-Occupancy and Other Improvement Issues
• Project Redesign
• Work Letter Agreements
  Model Clause: Definitions of Base, Shell, and Core
  Beyond Material and Labor Costs
  Scaffolding
  Model Lease Clause: Scaffolding

Chapter 2: Disputes, Liability, and Risk Management

• Alternative Dispute Resolution
  Arbitration
  Mediation
  Model Lease Language: Mediation
• Indemnity
  Indemnification Clause
  Model Lease Clause: Personal Injury and Property Damage Insurance
  Indemnification Agreement
  Model Agreement Letter: Indemnification of Costs of Architectural, Engineering Plans
• No-Mitigation Clause
• Specific Forms
  Residential to Commercial
  Lease Protections
  Model Lease Clause: Failure to Deliver Possession
• Liabilities for Injuries

Chapter 3: Environmental Issues

• Going Green
• Indoor Air Quality
  Add Protections to Leases
  Tenant's Obligations
  Manage and Monitor IAQ
• Environmental Insurance
  PLL Insurance Policy
  PLL Insurance Coverage Specifics
  Model Lease Clause: Environmental Insurance

Chapter 4: Financial Issues

• Asset Protection
  LLCs and LPs
  Charging Order Protection
  Equity Strips
• Property Tax Escalation
• Franchise Taxes
  Model Lease Language: Taxes
• Obtaining Loans
  Tenant Estoppel Certificate
  SNDA
  Why Lenders Demand Estoppel Certificate and SNDA
  Lease Strategies to Secure Loan

Chapter 5: Guarantors and Guaranties

• Guaranty Agreement
• 'Good-Guy' Guaranty
• Guaranty When Renting to Limited Liability Entity
  Lease Requirements
  Model Lease Clause: Guaranty
  Possible Tenant Modifications

Chapter 6: Insurance

• Deductible as Operating Expense
• Commercial General Liability Policy
• Waiver of Subrogation Clause
• Meaning of Insurance Requirement
• Terrorism Risk Insurance

Chapter 7: Options, Rights, and Renewals

• Tenant's Right of First Refusal
  Placing Limits
  Events that Will Not Trigger Refusal Right
  Model Lease Clause: Right of First Refusal
  Conflicts with Other Leases
• Options and Negotiating Special Rights
• Renewals

Chapter 8: Rent

• Additional Rent
• Operating Expenses/CAM Costs
  Capital Replacement Pass-Throughs
  Model Lease Clause: Capital Expenditures
  Pass-Through Costs After Disasters
• Percentage Rent
  Slotting or Placement Fees
  Off-Site Sales in 'Gross Sales' Definition
  Tenant's Annual Sales Reports
• Rent Concessions
  Model Lease Clause: Rent Abatement
  Start-Up Tenants
  Security Deposit Concessions
  Model Lease Clause: Security Deposit Concession
• Rent Payment
  Model Lease Clause: Late Fee and Default Interest
  Rent Acceleration Clauses
  Model Lease Clause: Rent Acceleration
  Performance Kickout Right and Reduced Rent
  Model Lease Clause: Conditions for Termination Right/Reduced Rent Right
  Where Tenant Must Send Rent Payment
• Rent Abatement
  Model Lease Clause: Return to Full Rent After Cotenancy

Chapter 9: Specialty Leasing Issues

• Banks
• Federal Agencies
  Law Enforcement Tenants
• Franchises
  Model Lease Clause: Termination of Franchise Agreement
• Medical Office Tenants
  Contamination Cleanup Responsibilities
• Nonprofits

Chapter 10: Sublets and Assignments

• Assigned Leases
  Model Lease Clause: Modification Following Assignment
  Lease Assignment in Good Faith
  Tenant's Assignment Profit
  Model Lease Clause: Sharing of Assignment Profits
  Lease as Collateral
  Model Lease Clause: Assignments/Sublets by Tenant's Lender
• Sublets

Chapter 11: Termination and Eviction

• Termination
  Model Lease Clause: Termination Lease Option
  Kick-Out Right
  Bad Faith Termination
  Condemned Property
  Illegal Contract Terms
  Standard Right of First Refusal
  Extension Term
• Eviction
  Building Demolition
  Constructive Eviction

Chapter 12: Use and Exclusives

• Use
  Flexible Use Clause
  Model Lease Clause: Permitted Use
  Limits on Tenant Use
  Certificate of Occupancy
  Revocable License for Extra Space
• Exclusives
  Landlord Leasing Covenant
  Model Lease Clause: Landlord Leasing Covenant

Risk-Free Guarantee
If for any reason you're not satisfied with Commercial Lease Law Answer Book, simply return the book within 30 days with the invoice marked "cancel" and owe nothing. If you've prepaid, you'll receive a prompt full refund, no questions asked.

With the purchase of this product, you agree to receive future annual editions at the pre-publication rate.
Future editions will be shipped on a 30-day risk-free approval basis and you may cancel at any time by notifying Vendome Group.

Order Your Copy Today!

Additional Information