X hits on this document

PDF document

NEGOTIATING KEY LEASE PROVISIONS A Landlord's Point of View - page 8 / 60

169 views

0 shares

0 downloads

0 comments

8 / 60

"multi-product supermarket in a space in excess of 20,000 square feet" would only prevent having another large supermarket in the Project.

C.

Hours: In retail situations, the landlord may require tenants to be open for certain

days and hours of operation.

    • D.

      Continuous Operation: Particularly in the retail setting, the landlord should require tenants to open for business in the premises and thereafter operate business continuously in the premises. In the event tenant fails to "continuously operate," the landlord should have the right to reclaim possession and terminate the lease. (See Form 15.)

  • IX.

    UTILITIES

A.

Equitable Reimbursement: Landlord's goal with respect to utilities is to obtain an

equitable sharing by tenants of utility charges based upon relative usage and to obtain reimbursement of common area utilities on a pro rata basis.

B.

Separate Metering: To the extent feasible, particularly in industrial and retail leases,

utilities should be separately metered so that each tenant contracts and pays for its own utility usage.

    • C.

      Reasonable Allocation: Utilities which are not separately metered to individual tenants should be allocated to the tenants serviced by such utilities based upon an equitable allocation. To ensure equity landlords should monitor relative usage of utilities by tenants, charge separately for extra or "off-hours" consumption and have a provision in all leases allowing allocation of utility charges among tenants, in landlord's discretion.

  • X.

    MAINTENANCE AND REPAIRS

A.

Tenant's Obligation: The lease should provide that the tenant is responsible for

keeping, maintaining and repairing the premises in the same condition as in which originally delivered. In retail leases, this obligation usually will extend to the storefront and storefront

glass. In industrial leases, the maintenance and repair obligations may extend to the repair and replacement of utilities, HVAC and exterior surfaces. In the event tenant fails to properly maintain and repair the premises, the landlord should have the right to complete such work itself and demand reimbursement from tenant.

B.

Landlord's Obligations. In most office projects, and certain retail and industrial

projects, the landlord will agree to be responsible for maintenance, repair and replacement of the roof and the common areas, and structural and exterior portions of the project. Remember that most repair and maintenance costs (as opposed to replacements of capital items) are subject to reimbursement by tenants under net and triple net leases. To be sure this is clear, it is advantageous to begin the provision regarding landlord's maintenance and

99999\11111\215691.V01 JDC

8

Document info
Document views169
Page views169
Page last viewedSat Dec 10 17:16:51 UTC 2016
Pages60
Paragraphs922
Words21785

Comments