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Q: A prospective tenant for my shopping center wants its cotenancy clause to provide that a specific well-known retailer that takes up a large space in the center must be replaced with a “major tenant” if the retailer goes out of business. I assume this means a tenant that’s large enough to fill the entire square footage of the vacant space. I’ve been focusing on some other hotly contested issues during negotiations. Should I be concerned about this term?
Q: I tend to lease space to a lot of partnership and corporate tenants. I recently learned that if a business hasn’t taken the necessary partnership or corporate actions to allow it to enter into a lease, I could end up having trouble enforcing the lease later. Are there any provisions I can include in the lease to avoid hassles down the road?
Q: After my tenant defaulted by failing to take care of several maintenance issues it was responsible for under the lease, I sent it a 30-day notice to cure. The notice also specified that if the tenant didn’t fix the maintenance problems, its lease would be terminated. The tenant claims that it is not responsible for the maintenance problems and it has asked a court for a ruling in its favor without a trial.
Q: My tenant agreed to be accountable for any ADA infraction that’s discovered in its space in the future. Could I still be on the hook for the same violation? And how can I make sure that I find out about the violation while there’s still time for me to correct it if my tenant hasn’t?
Q: My shopping center tenants are looking forward to the upcoming holiday season, when their businesses typically have more customers—and higher profits, which also benefit me by boosting the percentage rent I can collect. But foot traffic has been slow in recent holiday seasons. What can I do to encourage foot traffic during this profitable time?
Q: A shopping center near mine has experienced vandalism and at least one burglary recently. The crimes took place after hours. I’m afraid that my center will be affected next. I’ve installed more lighting in the parking lot. What else can I do to deter after-hours crimes?
Q: There are several retail tenants in my building, which I plan to convert to a condominium building with both commercial and residential units. I sent notices to the tenants announcing the plan and letting them know that they’ll be expected to contribute their pro rata share of the cost of the conversion. One tenant has balked at covering part of the cost of the updates that will be made. It’s arguing that it’s not responsible for such “capital improvements.” Can I make the tenant pay?
Q: I’m contemplating signing a lease with a tenant that will require the tenant to construct its own building at my shopping center and require me to pay a construction allowance within a certain period of time after the tenant opens for business. The tenant is negotiating for provisions allowing it, in the event that I don’t pay it the construction allowance, to abate rent and other charges until it has been paid.
Q: A tenant at my shopping center has been late paying rent two months in a row. I’ve heard that if I continue to accept late rent each month, the tenant could argue that the lease has been modified by my actions and it’s entitled to pay late. I suspect that the tenant is struggling. I’d like to help it in some way, but I’m not sure if it’s worth trying to keep the tenant in its space. What is the best way to handle this situation?
Q: A tenant’s lease for space at the center I own gives it the option to renew after three years at the same rate plus applicable taxes. To decide whether to exercise the option, the tenant says it needs to know the amount of taxes it’ll be required to pay. I’m wary of sharing financial information with the tenant. Do I have to provide this type of information?
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