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Key Points for Drafting Signage Clauses

By Scott R. Kipnis, Nicholas B. Malito and Jennifer Haberman

When negotiating a lease on behalf of a commercial tenant, an attorney should be mindful of both the legal and business aspects of the transaction. While all tenants seek quiet enjoyment, it is important to recognize that perhaps equally central are vehicular visibility and foot traffic. After all, without customers, tenants cannot afford to pay rent.

Landlords should also not overlook the fact that an individual tenant's success is critical to the success of a shopping center. One of the most important factors that can affect a tenant's visibility and the success of a shopping center is that tenant's signs. Therefore, it is in the best interest of both landlord and tenant attorneys to craft language that gives the tenant the right to install the signage it deems best suited for the tenant's branding and financial success, while balancing the needs of the public and the shopping center. This article provides guidance to attorneys on the suggested signage provisions to be included when negotiating a commercial lease in New York, as an example, and discusses the importance of ensuring that tenants' rights and landlord obligations pertaining to signage are expressly addressed in the lease.

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