A pre-recorded streaming VIDEO replay of the April 2023 webcast, Practical Advice: Basics of Advising Clients About Commercial Leasing.
Topics Covered
- The most important terms to cover in letters of intent
- The components of rent and additional rent (common area maintenance, taxes, insurance) and what may be attacked
- Due diligence to determine the condition of the rental premises
- Trends and reasoning behind limiting the initial term and extensions of the lease
- Identifying and resolving all permitting issues prior to execution
- Use restrictions demanded by a landlord and non-competition elements of a commercial lease
- Cost of the responsibilities regarding utilities
- Default events and remedies
- What can happen if the lease is not terminated, but the premises repossessed
- Negotiating for early termination or liability structuring
- Rights and subsequent obligations in assignments or subleases
- Negotiating landlord’s work and tenant’s work
- Using security deposits to reduce liability
- Differences between the guaranty, a suretyship, letters of credit, and corporate bonds for security options
- Common terms and methods in purchase options; and the advisability of securing the right to recording a short form memorandum of lease
Learn the complexities surrounding commercial leasing contracts, including the practical aspects of navigating those complexities and avoiding traps for the unwary in such transactions. Viewers obtain an overview of the structure of commercial leases and the key issues to be negotiated on behalf of clients seeking to lease commercial space.
Most commercial leases initially are structured in a manner that imposes very onerous and one-sided terms upon the tenant, including the creation of events of default for relatively minor breaches, allowing for the placement of liens on the tenant’s personal property in the event of such default, and making the tenant personally liable for the entire accelerated rent due under the lease. The program presenter identifies the essential points that affect the liability of the tenant and guarantors and explain strategies for negotiating various limitations on the liability of commercial tenants.
Learn how to spot the most common areas of controversy in commercial leases, including but not limited to common area maintenance charges, landlord’s right to relocate tenant, and liability of tenant in the event of damage to the property.