Beware of Special Requirements of Labor Union Tenants

Q A local chapter of a labor union wants to rent space in our building. Are there any lease requirements that are unique to labor union tenants that we should be aware of?

A Yes. Here are several examples of what you can expect during your lease negotiations, says San Francisco attorney Richard C. Mallory:

• The labor union tenant may demand that your building's janitorial staff be members of a labor union.

• If you agree to make alterations or improvements to the labor union's space, it will likely demand that you agree to hire only union contractors to do the work.

• The labor union tenant may demand that all other tenants in the building use union contractors, too. This would mean that you may have to give future tenants a larger tenant improvement allowance than you otherwise would have had to, since union contractors are typically more expensive than nonunion contractors.

CLLI Source

Richard C. Mallory, Esq.: Partner, Allen Matkins Leck Gamble & Mallory LLP, 3 Embarcadero Ctr., 12th Fl., San Francisco, CA 94111-4074; (415) 837-1515; RMallory@allenmatkins.com