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In the ever-morphing world of Retail Leasing, co-tenancy clauses often become the focus of negotiation—and a frequent flashpoint of disputes. Designed to protect tenants from being left vulnerable when shopping centers lose...more
In commercial leases, "operating expenses" (often referred to as OPEX, CAM or Common Area Maintenance) generally cover the costs associated with the daily operation, maintenance, and repair of the property. In addition to...more
Litigation attorney Anne Beehler and real estate attorney Andrew Starrels co-authored a Law360 article examining the Commercial Tenant Protection Act (S.B. 1103) in California that grants new rights to qualified commercial...more
The California Supreme Court weighed in on the validity of commercial lease co-tenancy provisions with its recent opinion in JJD-HOV Elk Grove, LLC v. Jo-Ann Stores, LLC. A commercial lease co-tenancy clause conditions a...more
Recent legislative changes impose new requirements for owners of California commercial properties, at least with respect to certain specified types of tenants. Effective Jan. 1, 2025, the Commercial Tenant Protection Act,...more
On September 30, 2024, Governor Newsom signed into law Senate Bill 1103, an unprecedented legislative measure affecting non-residential landlords’ transactions with a broadly defined class of “qualified commercial tenants.”...more
Two new laws go into effect on January 1, 2025, which will impact how commercial landlords manage their properties, as well as the timeline for unlawful detainer (eviction) cases....more
Commercial leases are a critical source of income and financial stability for property owners, but the current evolving economic environment presents many risks. One of the primary concerns is when a tenant falls behind on...more
Falling behind on rent or otherwise defaulting on lease obligations can lead to serious consequences for commercial tenants, including the landlord instituting legal proceedings for eviction and monetary damages. However,...more
California Senate Bill 1103 ("SB 1103") takes effect January 1, 2025 and will impact leases, amendments, and other lease modifications with respect to commercial property in California. In an effort to provide additional...more
When commercial landlords negotiate leases with prospective tenants, they understandably focus on key commercial terms, such as rental rate and renewal options. While that focus is justified, landlords should never overlook...more
The cannabis industry in the United States has experienced rapid growth, with an increasing number of states legalizing the use of marijuana for medical and recreational purposes. As of 2023, nearly half of the U.S....more
When managing commercial real estate, landlords must navigate a complex array of legal, financial and operational challenges to protect their investments and ensure smooth tenant relationships. However, a series of common...more
Commercial lease law is constantly evolving, with court rulings providing particularly interesting insights into the negotiation and management of commercial leases. Our selection of some of the High Court’s major decisions...more
The field of real estate law and commercial leasing is established and well-tested. For this reason, most landlords and tenants that enter into negotiations with their legal team and real estate brokers are very familiar with...more
Organizations now consistently include environmental, social and governance (ESG) factors in their policies, and the real estate sector is no exception. For stakeholders in the real estate sector, ESG factors are increasingly...more
When a business leases commercial space, it is common practice for the landlord to request that the company provide a personal guaranty, a protective measure taken to ensure landlords have recourse against a commercial lessee...more
As anyone who has watched FX’s The Bear knows, running a restaurant is hard work. When restaurants occupying leased commercial space fail, commercial landlords need a gameplan to protect their interests. Some key...more
Lease agreements with a term of more than one year are currently subject to a written form requirement under the German Civil Code. For years, there have been ongoing discussions about a potential abolition of the written...more
Exercising break clauses in commercial leases can often prove to be a legal minefield for any tenant (and, in some cases, a landlord) seeking to do so. Strict adherence to any conditions and notice requirements for the...more
As all restaurateurs know, a good location is an essential ingredient in any recipe for long-term success. But controlling costs is also a key factor. Renting your location—rather than actually purchasing real estate...more
These are rocky times for many office landlords. Office valuations continue to decline, interest rates remain high and office vacancy rates are nowhere near their pre-pandemic levels. ...more
Markets change. Situations change. Plans change. And in the face of change, tenants are often faced with future lease obligations that no longer suit their business plans. They need (or at least want) to change the deal with...more
In Hong Kong SAR and in Mainland China, we have observed an increase in the relative bargaining power of office tenants to negotiate their leases. A variety of factors, including a stronger supply of new office buildings and...more
As discussed in a previous Otten Johnson Alert, many Denver and Colorado property owners are subject to a slate of new benchmarking and energy performance requirements. Property owners will be implementing energy reduction...more