Strategies for Securing Against Tenant Defaults
September 01, 2003
Part One of a Two-Part Series. This two-part article describes some of the strategies that a landlord might utilize to protect itself from the impact of a tenant default or bankruptcy as it structures leasing transactions. The realization that landlords have become more security conscious will cause tenants to prepare themselves better to structure a deal that will accommodate the landlord's needs with the least possible burden.<p><i>Part One of a Two-Part Series</i>
In the Spotlight: Subtenants Should Arrange for Parking Spaces
September 01, 2003
Subtenants that sublease space in buildings where parking is made available by the prime landlord for an additional charge should make the proper arrangements with the prime landlord prior to the execution of the sublease in order to ensure that such parking is available as of the commencement of the sublease and will remain available during the term of the sublease.
Federalizing Real Estate Transactions
August 27, 2003
Most real estate transactions are governed by state law and local custom, not federal law. But a massive federal law enacted shortly after the 9/11 terrorist attacks raises the specter that the federal government may intrude into commercial real estate transactions in ways heretofore thought unimaginable. Known as the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism ('USA Patriot Act'), the legislation has led the federal government to propose rules designed to combat money laundering and terrorist financing in these types of transactions.
THE LEASING HOTLINE
August 18, 2003
Highlights of the latest commercial leasing cases from around the country.
Valuing Leased Property for Property Tax Review
August 18, 2003
When a taxpayer commences a real property tax review proceeding, his/her focus is on the bottom line — the amount of the real estate taxes paid on that property and getting them reduced. These bottom-line taxes are, however, the end product of a multistep process that ultimately results in the tax bill issued for that property.
In the Spotlight: How to Negotiate Overtime Payments for Services
August 18, 2003
Office leases typically provide that the landlord will furnish services without additional charge, including heat, ventilating, and air conditioning (HVAC) during 'normal business hours.' Many leases specifically denote such hours, sometimes including up to 6:00 p.m. on weekdays, and also Saturday mornings. These hours are usually not controversial, but certain tenants sometimes negotiate the specific hours. The potential problem for tenants is that many leases state that a tenant will be billed for overtime HVAC (or other services) without specifying a rate for such services.
A Broker's Perspective: How to Position Your Company for Success in Subleasing Office Space
August 18, 2003
The ensuing softening of the commercial real estate market fueled by massive corporate restructuring, downsizing and changes in geographic locations has led to a flood of sublease space being placed on the market. As recently reported in the National Real Estate Investor, there are 124 million square feet of office space being offered for sublet today, which equates to approximately 25% of total available office space nationwide. <i>See</i> Parke Chapman and Matt Valley, 'The Sublease Overhang: A 124 Million Square Foot Headache', National Real Estate Investor (February, 2003). In order to mitigate the cost of leasing unused space, companies are subletting, or similarly, positioning their excess space so that a favorable lease termination fee or a lease buy out can be negotiated with the existing landlord. As tenant representatives, we are often retained by companies to assist with their disposition efforts. We recommend that the following subleasing strategies be considered for mitigating a company's remaining leasehold obligation effectively.
