Last year, I wrote the following blog entry on holdover tenancies and the right of the landlord to collect an increased rent rate during any holdover period:  http://rrlawaz.com/2010/07/holdover-tenancies/   The increased rent rate is typically 125% – 200% of the last month’s rent rate.

From the landlord’s perspective, the right to collect increased holdover rent serves two primary purposes: (1) the increased rent allows the landlord to recapture some of the damages associated with a tenant’s failure to timely surrender the premises, and (2) the increased rent provides a disincentive to the tenant to wait until the end of the lease term to negotiate for a lease extension.  Both of these purposes assume that the tenant is not welcome to continue as a month-to-month tenant upon lease expiration and that the landlord has a tenant ready to move into the premises upon lease expiration.

Read the rest of this entry at: http://rrlawaz.com/2011/07/holdover-tenancies-revisited/

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In today’s market, it is common for landlords to give fully or partially abated rent as a lease concession to tenants.  Occasionally the abated rent is staggered throughout the term (e.g., one month’s rent is abated every year), but more often the abated rent is front-loaded at the beginning of the term.  Abated rent is factored into the overall economics of a lease deal, based on the tenant’s payment of rent during the entire length of the term.  Landlords should make sure that the lease allows the landlord to recapture the abated rent in the event of a tenant default.

Read the rest of this blog entry at: http://rrlawaz.com/2011/05/recapture-of-abated-rent-if-tenant-defaults/

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When negotiating a right to additional space (e.g., expansion right or right of first refusal or first offer), tenants should confirm with the landlord that no superior rights exist to the same additional space.  If other rights do exist, those rights will be superior and the tenant’s right will be subject to the existing rights.  Typically, a tenant assumes that its rights are exclusive or superior to any other rights.  That may not be the case.

Read the rest of this blog entry at: http://rrlawaz.com/2011/05/existing-superior-rights-to-additional-space/

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Most retail landlords (and some office landlords) require continuous operation clauses in their leases. Continuous operation clauses require that the tenant remain open for business during center hours during the entire lease term. With a continuous operation clause, a tenant must not only pay rent, but also must be open for business. Landlords require continuous operation because tenants in shopping centers are interdependent on one another for success. A full, open center benefits all of the tenants and enhances the value of the property.

Read the rest of this blog entry at: http://rrlawaz.com/2011/04/continuous-operation/

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The Subordination, Non-Disturbance and Attornment agreement (the “SNDA”) is a critically important document in commercial lease transactions, specifically for lenders and tenants.  The SNDA provides that: 1) the lease is subordinate to the loan (important to the lender); (2) the landlord will not disturb the tenant’s occupancy so long as the tenant performs under the lease (very important to the tenant); and (3) the tenant will attorn (i.e. recognize) the lender as its landlord if a foreclosure occurs (important to the lender).

Read the rest of this blog entry at: http://rrlawaz.com/2011/04/importance-of-sndas/

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Landlord-form commercial and retail leases frequently contain a provision that allows the landlord to relocate the tenant to another space in the building or project if desired by the landlord. In my experience, over the past three or so years, landlords nearly always have given up this right during lease negotiations. In fact, landlords often delete this provision before delivery of the lease to the tenant for review. As the leasing market begins to rebound, I am seeing landlords hold firm on relocation rights. Accordingly, tenants should understand how to negotiate appropriate limitations on landlord relocation rights.

Read the remainder of this post at: http://rrlawaz.com/2011/03/relocation-rights/

As a member of the real property section of the American Bar Association, I receive the bi-monthly publication Probate & Property.  In the January/February 2011 edition, the editors highlighted and summarized a recent Texas case (Del Lago Partners, Inc. v. Smith, 307 S.W.3d 762 (Tex. 2010)) regarding landowner liability for aggressive, intoxicated customers.

To read the remainder of this blog entry, click on the following link: http://rrlawaz.com/2011/01/liability-for-intoxicated-customers/

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Many retail tenants rely on signage to attract customers.  Though general signage rights often are negotiated in the Letter of Intent (e.g., size and location of building façade and monument signs), the design, color and fonts typically require the landlord’s approval, which may be withheld in the landlord’s reasonable discretion.  Depending on whether the signage is critical to the tenant’s operations, the tenant should push for approval of all signage characteristics in advance and specified in an exhibit attached to the lease.

To read the remainder of this blog entry, click on the following link: http://rrlawaz.com/2011/01/retail-signage/

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Important Note: This blog entry applies to commercial leases only and does not apply to residential leases.  Residential tenants have broad statutory rights under the Arizona Residential Landlord and Tenant Act.  Eviction of a residential tenant almost always requires court action.  See A.R.S. 33-1301 et seq.

This blog entry describes the process for evicting a commercial tenant in Arizona that is in default due to failure to pay rent or some other lease default. …

To read the rest of this blog entry, click here: http://rrlawaz.com/2011/01/commercial-tenant-eviction-process/

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Due to a variety of factors, several commercial real estate projects have abnormally high vacancy rates.   For retail shopping centers, the high vacancy rates adversely affect current tenants.  Though most commercial projects have an interdependency between the tenants of the project for the overall success of the project, this interdependency is particularly important in retail.  If full, more customers will visit the center.  If half-empty, the center will suffer.

For the rest of this blog entry, click on the following link: http://rrlawaz.com/2010/12/co-tenancy-requirements/

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