Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Given the age-old maxim of retailers that what matters is 'Location, Location and Location,' it is often difficult for an in-line retail tenant to confront the fact that its landlord can require it to relocate its store to other space in a mall or shopping center. On the other hand, owners of malls and shopping centers must retain the right to expand, to add new anchors and to remerchandise their properties from time to time ' thus, the 'Relocation' provision found in virtually all forms of in-line retail leases. This article explores the major issues that a relocation provision creates for a retail tenant and how some of those issues might be addressed in the lease.
It will serve to sharpen our focus to look first at a relocation provision taken from the form of lease used by the owner of a large regional mall, which is not an atypical provision. It states in pertinent part:
Landlord has the absolute right in its sole and unfettered discretion to relocate Tenant to another space in the Shopping Center. Landlord shall provide Tenant with not less than sixty (60) days written notice (the 'Relocation Period') of relocation specifying a date (the 'Relocation Date') upon which the relocation is to take place. During the Relocation Period, Landlord shall offer Tenant such alternative locations as may be available. In the event the parties agree on a specific location (the 'Relocation Premises'), then this Lease shall be amended to reflect the new location, square footage and rent. In the event Landlord and Tenant are unable to agree on the Relocation Premises during the Relocation Period, this Lease shall automatically terminate on the Relocation Date.
The clause goes on to provide that, if there is agreement as to the relocation space, rent will abate during a 60-day build-out period for the new space and the landlord will pay tenant the unamortized value of its improvements to the original premises. All very straightforward and to the point, is it not? Not exactly. Presented with such a provision, the retailer's concerns are myriad. For example:
So, what is a tenant to do?
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.