Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Commercial Leasing Law & StrategyLJN NewslettersNewsSections

Where's the Door?

By John H. Lewis

A retail tenant negotiating a new lease should always consider its alternatives for exiting from the lease relationship in the event that circumstances change in the future. Projected sales may be off the charts, and the demographics of the location may seemingly hold the promise of decades of successful operations, but no one truly knows what the future may hold, and a wise tenant needs to anticipate alternative futures. This is not an illicit exercise borne of impure motives, but simply wise business planning that should benefit not only the tenant, but the landlord as well. A landlord will not be well-served by forcing a struggling tenant to remain in place, when other, more financially viable alternatives are available. The importance of planning well for exit strategies in new leases, and considering how the terms of existing leases affect exit strategies, is amplified exponentially during difficult economic times, as events of the last several months make clear.

Many lease provisions, and many outside factors, affect tenant exit strategies. This two-part article explores some ways in which operating covenants and exclusive use provisions, in particular, affect the ability of a tenant to exit from a lease relationship. Although some specific suggestions are made, the primary intent of this discussion is to alert the leasing practitioner to various issues and pitfalls which may be encountered.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

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.

Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs Image

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.

Blockchain Domains: New Developments for Brand Owners Image

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.

Coverage Issues Stemming from Dry Cleaner Contamination Suits Image

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.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

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?