In the Spotlight: Renewing a Retail Lease

When the occupancy of a retail tenant is going to be renewed in its present location, landlords and tenants often simply agree to the new rent structure and the new term, and then document those understandings in a short amendment to the existing lease agreement. However, it would benefit both the landlord and the tenant to give some thought to certain of the terms in the existing lease, and whether those terms still are applicable to the occupancy of the space for the new extended term. In particular, landlords and tenants should evaluate additional construction work that may be needed, waiver of any claims that may exist (or resolution of those claims), extension of guarantees, reworking security deposits and addressing various issues that may not have been applicable at the time that the existing lease was executed.