1. Commercial Leasing
Typesof Retail leases:
a. Free-StandingBuildingNotlocatedinShoppingCenter
b. MultitenantBuildingNotLocatedinShoppingCenter
c. ShoppingCenter(enclosedmalls,open-aircenters,andspecial purpose shoppingcenters)
d. Gross, Net,Triple NetLease(BondLease)
Why have an AttorneyforCommercial Leasing
Commercial leasing,unlike residential leasing,hasmanyinand outs, liabilities,contractwriting
and negotiation,desires andneedsof landlordsaswell astenants.To the uniformedtenant,andeven
those highlyinformed,knowledgeof all lawswhilewritinglease drafts,leases,aswell asbusiness
planningcanbe a heftytask.
Attorneyswithcommercial real estateknowledge canhelpperspectivetenantswithlease
drafting,negotiation,andextensive knowledge onall provisionstatedinthe lease andsilentwithinthe
lease.Because manylandlordsmayfavorbigbox retailers,itisinthe bestinterestof anintendedtenant
to workwithan attorneyforbetterformsof negotiationandhavingaprofessional walkyouthroughall
of the legalitiesof rentingaswell asremindyouof whatshouldor shouldn’tbe partof a lease.
NegotiatingStrategiesandTechniques
Oftentimes,Landlordsof multi-businessshoppingcenterswill have theirownlease form
preparedforuniformitypurposes,whichmakesforahard negotiation.Inthese cases,attorneystryto
produce an initial draftof a lease whentheyare experiencedintheirpractice,fora chance at easier
lease negotiation.
Draftinga Lease
The mostbasic structure of writingaslease isas follows;The basictermsof the lease,effective
dates,identificationof boththe tenantandlandlord,tenantstrade name orname of business,
descriptionof shoppingcenterfromlandlord,exhibitedareasof premisesinwhichthe tenantisleasing,
permittedusagesof the property,optionstoextend,rent, percentagerentrate,acknowledgementof
guarantor,Landlordsaddress,tenantsaddress,andthe real estate managerscontactinformation.
Whendraftinga lease withanattorney,there are a few thingsyoushouldconsiderwithinthat
lease,aswell aswhenyousigna lease drawnupby the landlord:Propertytaxes,landlordsdesire to
maximize rent,openandclosedhoursof operation, neededinsurance,utilities, maintenance of the
premises, commonareamaintenance, tenantandlandlordsrights, aswell as the termsof alterations
and additions.
Early termination rights
Oftenreferredtoas “kick-out”clauses,andispreviouslydraftedforassurance andprotection
of stayinginthe lease ina downeconomicclimate,notgeneratingenoughsales,orincreasedpressures
fromcompetingbusinesses. Small businessare usuallynotable tonegotiate theirearlytermination

2. rightsinthe waythat bigretailerscan.Although,landlordsare oftenreluctanttograntthe right of early
terminationif theyhave afinancingplanonthe building,inwhichthe lenderassumesthatthe rentwill
pay the loan.Likewise,atenantshouldbe opposedtolandlordsexercisingearlyterminationrights.This
leavesanopenspace inwhicha landlordcan “kick-out”atenantat anytime,andleadsto the
premature lossof store frontfor the tenantfor thingsoutof theircontrol.Withthat, bothpartiescan
occur large costs withexercisedearlyterminationrights.Despite the opposition,bothlandlordsand
tenantscan exercise theirearlyterminationrightsinthe eventof unusual circumstancesthatcanand do
arise.