Negotiating Parking Privileges in Commercial Leases: What Every Tenant Should Know
June 28, 2005
Parking privileges are often essential to the businesses of commercial tenants. Given this proposition, it is surprising that many commercial tenants and their legal counsel often overlook important parking issues in favor of what may appear to be more pressing legal and economic issues in the lease negotiation process. This is unfortunate, as inadequate or ambiguous parking provisions can: 1) lead to costly legal battles, 2) harm a tenant's business, and 3) cause the deterioration of the landlord-tenant relationship.
The Leasing Hotline
June 28, 2005
Highlights of the latest commercial leasing cases from around the country.
Flat CAM Charges in Shopping Centers
June 28, 2005
Don't look back, but the gross lease of the not-too-distant past is making a comeback, as shopping center owners and retailers continue to seek absolute truth in the never ending uncertainty of budgeting and recovering common area maintenance ("CAM") charges. The latest and greatest chapter in this continuing saga has the parties establishing flat CAM charges with set percentage increases, in lieu of the variable cost recovery method that has been somewhat industry standard over the past quarter century.
The Emergence of IP Finance: A Bright Future Lies Ahead
June 28, 2005
A recent search of Amazon.com generated more than 2200 publications related to intellectual property. The publications covered a broad array of subjects including law, valuation, licensing, finance, management, and globalization. While this finding is illustrative of an expanding interest in intellectual property, the area of IP finance in particular is rapidly evolving and has the potential for significant growth.
News Briefs
June 27, 2005
Highlights of the latest franchising news from around the country.
How 7-Eleven Developed a New System-Wide Franchise Agreement
June 27, 2005
In 2004, 7-Eleven, Inc. offered its entire U.S. franchise network a new franchise agreement. More than 96% of the franchisees representing its 3400 franchised stores signed the new agreement. The plans, process, and activities that were a part of this endeavor and the experiences developing and implementing this new agreement offer insight to both franchisors and franchisees when planning system-wide changes and/or new franchise agreements.
Eureka v. Wentworth: Further Erosion of the 'Hell or High Water' Principle
May 26, 2005
A fundamental tenet of equipment leasing has been the concept of "hell or high water" rental payments. Once the lease is signed and the lessee accepts the goods, then the lessee's promises under the lease become irrevocable, especially the promise to pay rent. The draftsmen of UCC Article 2A recognized this critical element and codified it with respect to a finance lease in UCC §2A-407(1)-(2) (all citations herein refer to Uniform Commercial Code Article 2A pre-2003 revisions). A finance lease is a particular type of "true" equipment lease in which the lessee itself selects the item of equipment it wants and instructs the lessor to acquire it for lease to the lessee. UCC §2A-103(g). A finance lessor is neither the manufacturer nor supplier of the item of equipment; it is merely providing the money. Article 2A of the Uniform Commercial Code (the "Code" or the "UCC") extends certain benefits to finance lessors, one of the most important of which is that the lessee's promises are not subject to termination, modification or repudiation; in other words, the lessee must comply with them come "hell or high water." UCC §2A-407(2)(b).
In The Marketplace
May 26, 2005
Highlights of the latest equipment leasing news from around the country.
