Law Testimonials

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Richard M. Reeves, President Metropolis Investment Holdings, Inc.

Commercial Leasing Law

Commercial leases are long term legal contracts, often involving a great deal of money over time, and present a number of issues that require careful attention and often extensive negotiations. It is truly an area where "the devil is in the details." For example:

NBC Tower in Chicago, IL

Bank of America Plaza
We represent the Landlord in
all office and retail leases
for this complex

Since rent is often based on the number of "rentable" square feet within the leased premises, the manner in which rentable area is computed is important.

If operating costs for the building, often referred to as common area maintenance or CAM costs, are to be "passed through" to the tenant, it is important to specify which costs can be passed through and which ones cannot. Costs that vary with the occupancy of the building usually involve a "gross up" provision. Frequently the lease will contain an "expense stop" pursuant to which only costs in excess of those incurred in a given year, usually the year in which the lease commences, are passed through.

A tenant may need rights to expand its premises over time, which may take the form of rights of first refusal, rights of first offer, or outright options to lease certain space.

It is not uncommon in office and to some extent in retail leases for the landlord to want a right to relocate the tenant during the term of the lease.

If there are to be tenant improvements, landlords may provide an allowance, and it is important to define exactly what it may be used for and how and when it will be advanced, and a work letter governing the construction may be necessary.

It is important for the lease to specify the respective obligations of the landlord and the tenant for repairs and maintenance and the respective rights of the parties in the unlikely event of casualty damage or condemnation.

Other issues that may be encountered include renewal options, holdover provisions, termination rights, a tenant's right to assign or sublet, parking rights, and whether the lease is subordinate to any mortgages on the property.

Lease provisions dealing with these issues need to be carefully drafted in a manner that covers all the details and contingencies, precisely and clearly reflects "the deal" the parties have negotiated, and that is fair

NBC Tower in Chicago, IL

KBA is one of the world's largest manufacturers of printing presses. When its U.S. Subsidiary moved to Texas, we represented it in leasing this office/ warehouse facility

to both of them. It is an area where experienced and knowledgeable legal counsel can be of great value. Call the attorneys at Robert F. See, Jr & Associates, P.C. today.