Law.com Subscribers SAVE 30%

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

Commercial Leasing Law & StrategyKickerFeaturesTopicsCommercial LawSectionsNewsLJN Newsletters

Representing Tax-Exempt Organizations in Lease Negotiations

By Dana Malkus

When a real estate attorney is asked to assist a client with lease negotiations, the proposed landlord and tenant typically are individuals acting in their separate capacities, or taxpayer entities such as corporations, partnerships, or limited liability companies. However, nearly every real estate attorney will, at some point, find him- or herself involved in lease negotiations in which the landlord or the tenant is a tax-exempt organization. While many of the same principles that apply to lease negotiations between taxpaying individuals or entities also apply to lease negotiations involving one or more tax-exempt organizations, there are some additional considerations the real estate attorney should consider when assisting a client in such negotiations.

In “Tax Issues for Real Estate Leasing by Tax-Exempt Organizations,” the first in a series that appeared in the March 2009 issue of this newsletter, Michael Huft and Nina Knierim explained some of the tax considerations that tax-exempt landlords should consider when leasing real estate to third-party tenants. Other articles followed; the final article will appear in an upcoming issue. The primary issues examined in those articles were how to structure the lease payments or the relationship with the developer of the land to avoid having payments to the tax-exempt organization subject to tax for engaging in an business unrelated to the organization's exempt purpose. This article provides an overview of some of the other issues to be considered in lease negotiations involving one or more tax-exempt organizations. Specifically, effective lease negotiations require consideration of the tax-exempt organization's motives for entering into the transaction, the expectations and available resources of the tax-exempt organization, and viable exit strategies.

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
The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Warehouse Liability: Know Before You Stow! Image

As consumers continue to shift purchasing and consumption habits in the aftermath of the pandemic, manufacturers are increasingly reliant on third-party logistics and warehousing to ensure their products timely reach the market.