In the course of negotiating a retail lease, landlords are often requested by tenants to pay a portion of the tenant's cost of construction of the premises.
In the Spotlight: Considerations for Payment of a Construction Allowance
Several issues arise when contemplating the payment of a construction allowance to the tenant. In particular, issues such as the manner and timing for payment of the construction allowance, documentation required for the payment, and repayment in the event of a default by the tenant, should all be considered when addressing the issue of the construction allowance in the lease. This article discusses the foregoing issues and addresses various manners in which these issues can be dealt with in the lease.
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Glenn A. BrowneThis premium content is locked for LawJournalNewsletters subscribers only
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