There are numerous challenges facing San Diego business owners especially in today’s economic climate. Fighting for a share in an ever tightening market makes it difficult to keep up with monthly outlays not the least of which are lease payments and common area maintenance expenses (CAMS). Commercial lease lawyers in…
Articles Posted in Commercial Leasing
Common Pitfalls in Commercial Leasing
Most new businesses are required to enter into a commercial lease of one form or another. The owners of the business are typically presented with thirty to forty page leases set out in fine print on legal size paper. These standard leases are comprehensive and contain provisions that inexperienced business…
Early Termination of a Commercial Lease
There are a number of reasons why a business owner might be motivated to end a commercial lease early. The most common reason is that a business is not doing well enough to keep up with the lease payments. Other reasons include changes in the local market, the need for…
Assignment Clauses and Related Terms in Commercial Leasing
Assignment clauses are an important part of commercial leasing. They provide successful tenants an opportunity to sell their businesses and provide failing businesses the possibility of finding replacement tenants in order to avoid breaching their leases. Generally, landlords retain significant control over the process. This article focuses on lease terms…
Percentage Rent in Commercial Leasing
Percentage rent allows a retail landlord to benefit from a tenant’s success. In addition to the base rent, tenants will pay an additional rent based on some percentage of the tenant’s gross sales typically triggered by what is termed a “breakpoint”. New tenants asked to pay percentage rent are typically…
Radius Restrictions in Commercial Leasing
Landlords desire radius restrictions in commercial leases for two main reasons: where the landlord is entitled to percentage rent, a competing business within the restricted radius may dilute the landlord’s income; and more generally a competing business within the restricted radius can have a negative impact on the exclusive nature…
Exclusive Use Clauses in Commercial Leasing
Exclusive use clauses in commercial leasing are important to both landlords and tenants, especially in the retail context. Landlords need to focus on the right tenant mixture, ensure that obligations to existing tenants are met and maintain the ability to attract new tenants. Prospective tenants need to know that a…
What is Gross Negligence in Indemnification Clauses?
Commercial tenants are often perplexed when they realize that under the terms of their lease, they are responsible for damages that occur on the leased premises even if caused by the landlord’s own negligence. In most cases, the landlord’s liability for just about any scenario is limited to gross negligence…
Negotiating Option Clauses in Commercial Leases
The terms of commercial leases vary significantly depending on the type of commercial property being leased and the specific business goals of both landlords and tenants. “Option clauses,” also known as “renewal terms,” are provisions in a commercial lease agreement that allow a tenant to extend the term of the…
Indemnification Clauses in Commercial Leasing
Indemnity clauses in general are designed to shift liability for claims asserted by third parties from one party to another. In the commercial lease context, tenants typically agree to both indemnify landlords and to defend and hold them harmless for all claims arising out of tenant’s operation of business on…