Chapter 19 DRAFTING AND NEGOTIATING COMMERCIAL LEASE

0001

VERSACOMP (4.2 ) ? COMPOSE2 (4.43) LexisNexis Answer Guide Generic Stylefile J:\VRS\DAT\01342\19.GML --- AG_NY.sty --CTP READY-- v2.8 10/30 --- POST

11/01/05 (18:38) 1

Chapter 19

DRAFTING AND NEGOTIATING COMMERCIAL LEASE

PART A: ? 19.01 PART B: ? 19.02 ? 19.03 ? 19.04 ? 19.05

? 19.06 ? 19.07 ? 19.08

? 19.09

PART C:

Synopsis

TRANSACTIONAL CONTEXT

Transactional Context--Drafting and Negotiating Commercial Lease

DRAFTING AND NEGOTIATING VARIOUS FORMS OF COMMERCIAL LEASE

Checklist for Drafting and Negotiating Various Forms of Commercial Lease Negotiating Office Lease Considering Store Lease Provisions Advising About Shopping Center Lease [1] Considering Mix of Shopping Center Tenants [2] Negotiating Initial Occupancy or Continued Occupancy

Rates [3] Using Reciprocal Easement Agreement Instead of Shop-

ping Center Lease Upstate Considering Commercial Loft and Industrial Lease Provisions Establishing Obligations Under Net Leases Negotiating Ground Lease Insurance and Appraisal Provisions [1] Defining Ground Lease and Obtaining Insurance

Coverage [2] Negotiating Appraisal Provisions in Ground Lease Providing Purchase Options and Rights of First Refusal [1] Drafting Option to Purchase Large Structures Demands

Attention to Detail [2] Drafting First Refusal or First Privilege Options

DRAFTING AND NEGOTIATING TERM AND PAYMENT PROVISIONS IN COMMERCIAL LEASE

19?1

0002

VERSACOMP (4.2 ) ? COMPOSE2 (4.43) LexisNexis Answer Guide Generic Stylefile J:\VRS\DAT\01342\19.GML --- AG_NY.sty --CTP READY-- v2.8 10/30 --- POST

11/01/05 (18:38) 29

? 19.10 ? 19.11 ? 19.12 ? 19.13 ? 19.14 ? 19.15

? 19.16

? 19.17

? 19.18 ? 19.19 PART D:

? 19.20 ? 19.21

? 19.22 ? 19.23

NEW YORK REAL PROPERTY

19?2

Checklist for Drafting and Negotiating Term and Payment Provisions in Commercial Lease Describing Demised Premises Determining Lease Term Negotiating Lease Term Commencement Providing for Renewals and Options to Renew Establishing Base Rent in Commercial Lease Negotiations [1] Negotiating Rent Clauses, Percentage Arrangements,

Escalation Clauses [2] Tendering Rent Checks for Less Than Full Amount [3] Considering Tax Impacts of Periodic Rent Payments Negotiating Percentage Rent Lease Clauses [1] Determining Formula for Setting Guaranteed Minimum

Rent [2] Specifying Time of Percentage Rent Payment and Avail-

ability of Financial Records [3] Adding Additional Restrictions and Exceptions Determining Structure of Escalation Clauses [1] Defining Operating Expenses in Escalation Clause [2] Requiring Statement for Calculating Operating Expenses [3] Selecting Mechanism for Rent Increases Under Escala-

tion Clause [4] Negotiating Pay Now, Fight Later Clauses Structuring Security Deposit Clauses Establishing Guarantor Obligations

DRAFTING AND NEGOTIATING RESTRICTION, ALTERATION, AND REPAIR PROVISIONS IN COMMERCIAL LEASE

Checklist for Drafting and Negotiating Restriction, Alteration, and Repair Provisions in Commercial Lease Negotiating Use Restrictions [1] Considering Landlord and Tenant Use Needs [2] Ensuring Tenant's Intended Use Is Permissible [3] Negotiating Sign Requirements Drafting Non-Competition and Radius Restrictions on Tenant's Business Defining Operating Covenants Governing Tenant's Business

0003

VERSACOMP (4.2 ) ? COMPOSE2 (4.43) LexisNexis Answer Guide Generic Stylefile J:\VRS\DAT\01342\19.GML --- AG_NY.sty --CTP READY-- v2.8 10/30 --- POST

11/01/05 (18:38) 57

19?3 ? 19.24 ? 19.25

? 19.26

? 19.27

? 19.28 PART E: ? 19.29 ? 19.30 ? 19.31

? 19.32 ? 19.33

DRAFTING AND NEGOTIATING COMMERCIAL LEASE

[1] Negotiating Operating Covenants in Shopping Centers [2] Using Reciprocal Easement Agreements Prohibiting Businesses Competing with Retail or Shopping Center Tenant Allocating Costs of Complying with State and Federal Laws [1] Defining Conditions Under Which Each Party Is Re-

sponsible for Work [2] Bearing Compliance Cost in Net Leases of Entire

Buildings [3] Subjecting Parties to ADA Compliance Costs Providing for Alteration and Improvement Rights [1] Establishing Parameters of Tenant's Right to Make

Alterations [2] Reviewing and Negotiating Work Letters [3] Providing for Inspections and Punch List Items [4] Considering Tax Treatment for Tenant Alterations Determining Repair and Maintenance Obligations [1] Defining Structural Elements and What Constitutes

Premises [2] Negotiating Repair Obligations Under Long Term and

Net Leases [3] Specifying Responsibility for Maintaining Premises Incorporating Mechanics' Lien Provisions into Repair, Alteration, or Compliance Clauses

DRAFTING AND NEGOTIATING ANCILLARY SERVICE, TAX, AND INSURANCE PROVISIONS IN COMMERCIAL LEASE

Checklist for Drafting and Negotiating Ancillary Service, Tax, and Insurance Provisions in Commercial Lease Maintaining and Altering Common Area and Parking Space Offering Utilities and Energy to Tenant [1] Purchasing Electricity [2] Allocating Electricity Costs [3] Charging for Water Usage and Being Aware of Client's

Technological Needs Providing Heating, Ventilation, Air Conditioning, and Other Services Negotiating Real Property Tax Payment Responsibility

0004

VERSACOMP (4.2 ) ? COMPOSE2 (4.43) LexisNexis Answer Guide Generic Stylefile J:\VRS\DAT\01342\19.GML --- AG_NY.sty --CTP READY-- v2.8 10/30 --- POST

11/01/05 (18:38) 83

? 19.34

PART F:

? 19.35 ? 19.36 ? 19.37 ? 19.38 ? 19.39 ? 19.40

? 19.41

? 19.42 PART G: ? 19.43 ? 19.44 ? 19.45

NEW YORK REAL PROPERTY

19?4

Structuring Insurance Provisions [1] Defining Nature and Amount of Property Insurance [2] Determining Insurance Cost and Cost Increases [3] Drafting Indemnification Clauses

DRAFTING AND NEGOTIATING COMMERCIAL LEASE PROVISIONS CONCERNING CONTINUED OCCUPANCY AND DEFAULT

Checklist for Drafting and Negotiating Commercial Lease Provisions Concerning Continued Occupancy and Default Delineating Rights in Event of Condemnation Establishing Obligations and Recovery for Destruction of Premises Negotiating Subletting and Assignment Rights Prescribing Arbitration and Appraisal Remedies If Disputes Occur Defining Default Responsibilities and Notice Requirements [1] Requesting Notice and Remedies [2] Calculating Holdover Cost and Selecting Arbitration over

Litigation [3] Preserving Purchase and Renewal Rights Through Yel-

lowstone Injunction [4] Requiring Specific Performance and Attorneys' Fees Requesting Documents in Sale or Mortgage of Landlord's Interest [1] Requesting Estoppel Certificates from Tenant [2] Executing SNDA Agreements with Mortgage of Land-

lord's Interest Permitting Mortgage of Long-Term Leasehold

DRAFTING AND NEGOTIATING OTHER COMMERCIAL LEASE PROVISIONS

Checklist for Drafting and Negotiating Other Commercial Lease Provisions Identifying Tenant's Broker Determining Landlord's Access to Premises, Representations, Warranties, and Waiver [1] Defining Landlord's Right to Enter Premises

0005

VERSACOMP (4.2 ) ? COMPOSE2 (4.43) LexisNexis Answer Guide Generic Stylefile J:\VRS\DAT\01342\19.GML --- AG_NY.sty --CTP READY-- v2.8 10/30 --- POST

11/01/05 (18:38) 107

19?5

? 19.46 ? 19.47 ? 19.48 ? 19.49 ? 19.50

DRAFTING AND NEGOTIATING COMMERCIAL LEASE

[2] Setting Forth Prior Oral or Written Understandings [3] Failing to Insist on Strict Performance Not Waiver Dealing with Bankruptcy, Fees, Expenses, and Waiver of Jury Trial Coping with Failure to Give Possession and Inability to Perform Enforcing Rules and Regulations Relocating Tenants Understanding Execution, Recording, and Priority of Lease

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download