Part I - INTRODUCTION
Chapter 1. DEFINING THE COMMERCIAL LEASE
- §1.01 Old Law and New Business
- §1.02 Ownership and Possession
- §1.03 Is the Lease a Conveyance or a Contract?
- §1.04 Comparison of Leasing and Secured Lending
- §1.05 Role of the Lender
- §1.06 “Business Points” and “Legal Points”
- §1.07 Taking Tenants from Another Landlord
Chapter 2. ORGANIZATION AND SCOPE
- §2.01 Overview
- §2.02 Using and Abusing Forms
- §2.03 Need for Clarity of Expression
- §2.04 Scope
- §2.05 A Balanced Lease
- §2.06 Letters of Intent
- §2.07 The Most Favored Tenant Provision
- §2.08 Green Lease
Part II - THE ESSENTIAL LEASE PROVISIONS
Chapter 3. INTRODUCTORY PROVISIONS
- §3.01 Presenting Basic Lease Information
- §3.02 Identifying the Lease
- §3.03 Date of the Lease
- §3.04 Tradenames and Service Marks
- §3.05 Individuals
- §3.06 Co-Owners and Co-Tenants
- §3.07 Corporations
- §3.08 Partnerships
- §3.09 Agents, Representatives, and Guardians
- §3.10 Charitable Associations, Campaign Committees, and Government Entities
- §3.11 Tax-Exempt Organizations
- §3.12 Tenants with Sovereign Immunity
- §3.13 Franchisors and Franchisees
- §3.14 “Anti-Terrorism” Provisions
- §3.15 “And/or Assigns”
- §3.16 Grant or Agreement of Lease
- §3.17 Electronic Signature
- §3.18 Federal Income Tax Consequences of Obtaining a Lease
Chapter 4. THE PREMISES
- §4.01 An Approach to the Description of the Premises
- §4.02 Description of the Single Tenant Building
- §4.03 Description of the Shopping Center Premises
- §4.04 Measurement of the Shopping Center Premises
- §4.05 Appurtenances in a Shopping Center
- §4.06 Designating Certain Areas
- §4.07 Preserving Flexibility in Shopping Center Development
- §4.08 Description of the Office Building Premises
- §4.09 Introduction to BOMA Measurement (The 2010 Standard)
- §4.10 Occupant Area, Usable Area, and Rentable Area
- §4.11 Importance of Measurement
- §4.12 Store Area in an Office Building
- §4.13 Appurtenances in an Office Building
- §4.14 Personal Property
- §4.15 Storage Space
- §4.16 Telecommunications Equipment
- §4.17 Lenders’ Concerns About Premises
- §4.18 Options—Generally
- §4.19 Relocation
Chapter 5. THE TERM
- §5.01 Defining the Term
- §5.02 Landlord's Failure to Deliver Possession
- §5.03 Existing Premises
- §5.04 Completion of Office Premises
- §5.05 Workletters
- §5.06Completion and Acceptance of New Shopping Center Premises
- §5.07 Requiring Completion of Other Parts of the Shopping Center and Occupancy by Other Tenants
- §5.08 Allowing Early Occupancy
- §5.09 Implied Warranty of Tenantability
- §5.10 Lenders' Concerns about Term
- §5.11 Option to Extend or Renew a Lease
- §5.12 Notice
- §5.13 Terms of Renewal (General)
- §5.14 Terms of Renewal (Rent)
- §5.15 Option to Terminate Lease
- §5.16 Early Termination of Lease by Agreement
- §5.17 Federal Income Tax Consequences of an Agreement to Terminate a Lease
- §5.18 Federal Income Tax Consequences of a Construction Allowance
Chapter 6. THE RENT
- §6.01 Base Rent
- §6.02 Free Rent Arrangements
- §6.03 Stepped Up Rent
- §6.04 Cost of Living Adjustments
- §6.05 Porter's Wage Escalations
- §6.06 An Approach to Percentage Rent
- §6.07 Lenders' Concerns about Rent
- §6.08 Federal Income Tax Consequences at Payment and Receipt of Rent
- §6.09 Renegotiating the Rent
Chapter 7. OPERATING EXPENSES
- §7.01 Introduction to Operating Expenses
- §7.02 Operating Expenses in Office Building Leases
- §7.03 Preparing and Reviewing an Office Building Operating Expenses Provision
- §7.04 “Grossing Up” Operating Expenses
- §7.05 Comparing Several Office Leases
- §7.06 Operating Expenses in Shopping Centers
- §7.07 Operating Expenses in Single Tenant Leases
- §7.08 Audits
- §7.09 Related Provisions
Part III - ADDITIONAL EXPENSES FOR THE TENANT
Chapter 8. TAXES AND ASSESSMENTS
- §8.01 Introduction
- §8.02 Definition of Taxes
- §8.03 Taxes and the Single Tenant Building
- §8.04 Net Tax Provision in a Multitenant Development
- §8.05 Base Amount Tax Provision in a Multitenant Development
- §8.06 Base Year Tax Provision in a Multitenant Development
Chapter 9. UTILITIES
- §9.01 Introduction
- §9.02 Utilities in Single Tenant Building Lease
- §9.03 Utilities in Shopping Center Lease
- §9.04 Utilities in Office Building Lease
- §9.05 Direct Metering, Submetering, and Electric Rent Inclusion
- §9.06 Deregulation of the Electric Utility Industry
Chapter 10. INSURANCE
- §10.01 Insurance in Leases: Its Meaning
- §10.02 Insurance in Leases: Its Difficulty
- §10.03 Methods of Risk Management
- §10.04 The Principal Coverages: Property and Liability Insurance
- §10.05 Property Insurance
- §10.06 Rent Insurance
- §10.07 Waiver of Subrogation
- §10.08 Liability Insurance
- §10.09 The Hierarchy of Insureds
- §10.10 Certificates of Insurance and Binders
- §10.11 The Insurance Company Ratings
- §10.12 Self-Insurance
- §10.13 Blanket Insurance, Excess Insurance, and Umbrella Coverage
- §10.14 An Insurance Provision
- §10.15 Related Provision
Part IV - CONTROLLING THE TENANT'S CONDUCT
Chapter 11. USE
- §11.01 Introduction
- §11.02 The Law
- §11.03 Use Provisions
- §11.04 Exclusive Uses
- §11.05 Covenants and Other Obligations
- §11.06 Radius Restrictions
- §11.07 Bankruptcy
- §11.08 The Covenant of Good Faith and Fair Dealing in Leases
- §11.09 Related Provisions
Chapter 12. COMPLIANCE WITH LAWS
- §12.01 General Compliance Provisions
- §12.02 Right to Contest
- §12.03 Compliance with Environmental Laws
- §12.04 Negotiating the Environmental Compliance Provision
- §12.05 The Americans with Disabilities Act of 1990
- §12.06 Related Provisions
Chapter 13. ASSIGNMENTS AND SUBLEASES
- §13.01 An Approach to Assignments and Subleases
- §13.02 Assignment and Sublease Defined
- §13.03 Privity
- §13.04 An Absolute Prohibition
- §13.05 Requirement of Landlord's Consent
- §13.06 Requirement of Consent Not to Be Unreasonably Withheld
- §13.07 Limiting the Tenants' Remedies
- §13.08 Redefining the Assignment and Sublease
- §13.09 Imposing Further Conditions to Consent
- §13.10 Recapture and Profit Sharing
- §13.11 Relationship of Prohibitions of Assignment and Sublease to Default Provisions
- §13.12 Preparing a Form of Assignment
- §13.13 Preparing a Form of Sublease
- §13.14 Recognition Agreement (For a Sublease)
- §13.15 Lenders' Concerns about Assignments and Subleases
- §13.16 Related Provisions
Chapter 14 SIGNS
- §14.01 Introduction
- §14.02 Signs in Single Tenant Leases
- §14.03 Signs in Office Building Leases
- §14.04 Signs in Shopping Center Leases
Chapter 15. RULES AND REGULATIONS
- §15.01 Introduction
- §15.02 Rules and Regulations for Shopping Centers
- §15.03 Rules and Regulations for Office Buildings
Chapter 16. MERCHANTS' ASSOCIATIONS, PROMOTION FUNDS, AND ADVERTISING FUNDS
- §16.01 Merchants' Association
- §16.02 Promotion Funds and Advertising Funds
Part V - GIVING THE TENANT RIGHTS
Chapter 17. LANDLORD'S SERVICES
- §17.01 Writing and Reviewing the Provision
- §17.02 Interruption of Services
- §17.03 Security
Chapter 18. COMMON AREAS
- §18.01 Introduction
- §18.02 Common Areas in Office Buildings
- §18.03 Common Areas in Shopping Centers—Grant
Part VI - PRESERVING THE PREMISES
Chapter 19. REPAIRS AND MAINTENANCE
- §19.01 Introduction
- §19.02 Common Law Rules
- §19.03 Practical Overview
- §19.04 Repair Provisions
- §19.05 Related Provisions
Chapter 20. ALTERATIONS
- §20.01 The Law
- §20.02 Further Considerations
- §20.03 Alteration Provisions
- §20.04 Lenders' Concerns about Alterations
- §20.05 Related Provisions
Chapter 21. MECHANICS' LIENS
- §21.01 Introduction
- §21.02 Mechanics' Lien Provision
- §21.03 Related Provisions
Chapter 22. SURRENDER
- §22.01 Early Termination of Lease by Operation of Law
- §22.02 Redelivery at End of Term
- §22.03 Fixtures and Other Property
- §22.04 Lease Terminations as Fraudulent Transfers
- §22.05 Related Provisions
Chapter 23. DAMAGE AND DESTRUCTION
- §23.01 Introduction
- §23.02 Landlord's and Tenant's Concerns
- §23.03 Does the Damage Affect the Lease?
- §23.04 Parts of the Lease Affected
- §23.05 Damage and Destruction
- §23.06 Lender's Concerns about Damage and Destruction
- §23.07 Related Provisions
Chapter 24. CONDEMNATION
- §24.01 Condemnation and Eminent Domain
- §24.02 Takings
- §24.03 Condemnation
- §24.04 Landlord's Restoration of Premises
- §24.05 Allocation of Condemnation Award
- §24.06 Lenders' Concerns about Condemnation
- §24.07 Deceptive Role of Some Mortgages
Part VII - PROTECTING THE LANDLORD
Chapter 25. SUBORDINATION
- §25.01 Overview
- §25.02 The Legal Principles
- §25.03 The Landlord's Interests
- §25.04 The Lender's Interests
- §25.05 The Tenant's Interests
- §25.06 Negotiating the Subordination, Nondisturbance, and Attornment Agreement
- §25.07 Subleases and a Possible Unity of Interests
Chapter 26. LANDLORD'S ACCESS
- §26.01 General Access Provisions
- §26.02 Considerations for Shopping Center Tenants
Chapter 27. INDEMNIFICATION AND WAIVER
- §27.01 Introduction
- §27.02 Indemnification
- §27.03 Waiver
- §27.04 The Relevant Law
- §27.05 Related Provisions
Chapter 28. SECURITY FOR TENANT'S PERFORMANCE
- §28.01 Introduction
- §28.02Preparing and Reviewing a Basic Security Deposit Provision
- §28.03 Types of Security Deposits
- §28.04 Limitations on Tenant's Liability
- §28.05 Guarantors
- §28.06 Guaranty of Lease
- §28.07 Successor's Obligation to Return Security Deposits
- §28.08 Lender's Other Concerns about Security Deposits
- §28.09 Federal Income Tax Consequences of Security Deposits
Chapter 29. COVENANT OF QUIET ENJOYMENT
- §29.01 General Rules
- §29.02 Limitations of the Covenant
- §29.03 Inappropriate Uses
Chapter 30. LIMITATION ON TENANT'S RECOURSE: SALE OF THE PREMISES
- §30.01 Introduction
- §30.02 Limitation on Tenant's Recourse
- §30.03 Sale of the Premises
Part VIII - DEFAULT AND ARBITRATION
Chapter 31. DEFAULT
- §31.01 Landlord's Default
- §31.02 Tenant's Default
- §31.03 Special Bankruptcy Provisions
- §31.04 Duty to Mitigate
- §31.05 Landlord's Lien
- §31.06 Contesting Guaranties
- §31.07 Bankruptcy
- §31.08 Related Provisions
Chapter 32. ARBITRATION
- §32.01 Introduction
- §32.02 The Law of Arbitration
- §32.03 Scope of the Arbitration
- §32.04 Commencing the Arbitration
- §32.05 The Proceedings
- §32.06 Form of the Award
- §32.07 Availability of Expertise
- §32.08 Appropriate Topics for Arbitration
- §32.09 Inappropriate Topics for Arbitration
- §32.10 Judicial Review
- §32.11 Drafting Arbitration Provisions
- §32.12 Conclusion
Part IX - MISCELLANEOUS PROVISIONS
Chapter 33. MISCELLANEOUS PROVISIONS
- §33.01 Submission of the Lease
- §33.02 Brokers
- §33.03 Recordation
- §33.04 Leasehold Title Insurance
- §33.05 Holding Over
- §33.06 Time of the Essence
- §33.07 Force Majeure
- §33.08 No Light, Air, and View Easements
- §33.09 No Partnership
- §33.10 No Merger
- §33.11 Modification and Financing Conditions
- §33.12 Consents and Approvals
- §33.13 Estoppel Certificates
- §33.14 No Waiver
- §33.15 Joint and Several Liability
- §33.16 Authority
- §33.17 Captions,Exhibits, Gender, and Number
- §33.18 Entire Agreement
- §33.19 Severability
- §33.20 No Construction Against Preparer of Lease
- §33.21 Notices
- §33.22 Litigation Issues
- §33.23 Binding Effect
Appendix A: Miscellaneous Forms
- Office Lease
- Shopping Center Lease
- Single Tenant Lease
Table of Cases
List of Forms
Index
