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Looking through the local news recently, I noticed an article about D.C. companies making significant changes to their office spaces. Notably, statistics show that more and more businesses are choosing to downsize their spaces and move to other locations. In the age of Zoom meetings and hybrid working environments, many companies are rethinking their need…READ MORE
Author:
Judyann M. Lee
03/07/2023
If you are looking to rent space in a building or property for your business, you should start by looking for the appropriate location for your specific use. The business use category will also affect the language and conditions of the lease and certain requirements for approval of the use. A restaurant or retail lease…READ MORE
Author:
Michael A. Faerber
06/03/2021
During these times of COVID-19 related business and office quarantining and closures, companies and their employees are learning new ways to be efficient and productive. Remote working, while certainly a pre-COVID-19 option, has become the new normal. Workers have become adept at completing tasks and projects away from the office, using platforms like remote-desktop for…READ MORE
Author:
Michael A. Faerber
07/20/2020
Many leases for retail spaces, including restaurants, include terms that require the tenant to pay to the landlord a percentage of profits earned from gross sales. This “percentage rent” payment is over and above the monthly base rent, operating costs and taxes that the tenant also pays the landlord under the lease. For retail or…READ MORE
Author:
Michael A. Faerber
05/06/2020
One important consideration for landlords and tenants in commercial lease negotiations in Maryland is whether to demand a tenant’s exclusive use clause (if you are the tenant) or when to extend that right to your tenants (if you are a landlord). An exclusive use clause grants the tenant the right to prevent the landlord from…READ MORE
Author:
Peter E. Ciferri
05/03/2020
Any of you that are in the process of negotiating a new lease, or considering negotiating a new lease in the near future, should expect some issues regarding delays. Tenants are finding themselves tentative to pull the trigger on signing leases due to uncertainty of their business moving forward in the short term. Additionally, there…READ MORE
Author:
Michael A. Faerber
04/21/2020
COVID-19 closures, stay-at-home orders, and governmental restrictions are wreaking havoc on otherwise happy business relationships. Meeting monthly payment obligations is one major concern facing all parties as the calendar turns to April without an end to the pandemic crisis. Businesses might also encounter difficulties reaching other deadlines or touchstones in a timely and complete manner….READ MORE
Author:
Peter E. Ciferri
04/02/2020
Coronavirus (Covid-19) is sure to quickly take its toll on commercial leasing for both Landlords and for Tenants. Tenants may be asking questions like: How can I pay base monthly rent without any customers? Should I be obligated to pay triple-net expenses when services are suspended? What is the impact of government regulations on operations?…READ MORE
Author:
Peter E. Ciferri
03/20/2020
In the last two years, businesses and professionals in Maryland and Washington, D.C., have had to quickly pivot to avoid the negative economic impacts of completely unexpected events outside of their control. First, there were tariffs and trade restrictions, followed quickly by the Coronavirus global pandemic. How can you give your contracts additional strength before…READ MORE
Author:
Peter E. Ciferri
03/18/2020
Recently, we have had two instances in which clients signed leases and were obligated to obtain an Occupancy Permit. In both cases, the prospective tenants were unable to obtain an Occupancy Permit because the use was not permitted. The landlord did not inform, or was unaware, that the use was not permitted in the zoning….READ MORE
Author:
Michael A. Faerber
05/23/2019
If you rent space in an office building, strip retail center or some other commercial building, at some point in time, you may need to find someone else to share your space because you have too much space, or you may need help in making rent payments. In some circumstances, you may realize that you…READ MORE
Author:
Michael A. Faerber
05/06/2019
If you are opening a new business or looking for new space for your existing business, you need to understand how the leasing cycle works and give yourself enough time to allow all issues to be properly addressed. The process and timeline are different for every business, but even if you think you are making…READ MORE
Author:
Michael A. Faerber
02/28/2017
When you negotiate a lease for new space – whether for a restaurant, retail store, office or medical use – work usually needs to be done to the space before it can be used. Often the lease will include construction requirements that need to be hashed out so that all parties understand the procedures for…READ MORE
Author:
Michael A. Faerber
01/13/2014
When you sign a “non-binding” Letter of Intent or Term Sheet before negotiating a lease, you might logically believe that you will not be bound by it. Unfortunately, based on recent trends and case law, that is not true. Letters of Intent and Term Sheets (both referred to as “LOIs” here) serve the same purpose:…READ MORE
Author:
A. Howard Metro
12/06/2013
Owning and operating a restaurant business can be exciting, fast moving, exhausting and scary, all at the same time. You may have a certain vision of how you want your restaurant to look and run. However, before that vision can come to life, there are many issues during the lease negotiation to consider –details that…READ MORE
Author:
Michael A. Faerber
10/31/2013
Often, I am asked by my clients whether they should consider converting their commercial building into a condominium. If you are thinking about selling a commercial property that you own or plan to build in Maryland, then you may want consider this opportunity. It is very possible you could generate a more favorable return if…READ MORE
Author:
Michael A. Faerber
09/24/2013
When medical professionals lease new space there are complicated issues that can cause long-term problems if they are not addressed correctly. When we work with physicians or other healthcare-related businesses on leases, here are some of the things we look for: 1. Build-Out/Construction Issues Medical offices often need numerous rooms for different purposes and layouts…READ MORE
Author:
Michael A. Faerber
05/15/2013
A commercial lease is one of the largest financial and legal commitments a business makes. So before signing a lease, you should ask your attorney to review it to understand what costs, responsibilities and liabilities the landlord is passing on to you as the tenant. You should also determine which, if any, terms you can…READ MORE
Author:
Michael A. Faerber
03/29/2013
Negotiating a new commercial lease is tricky in many ways. The Landlord and Tenant are both focused on establishing their relationship and the business terms for the lease deal. However, both parties should give thought at the outset about whether or not they should consider opportunities to continue their relationship beyond the initial term of…READ MORE
Author:
Michael A. Faerber
01/28/2013
A lease for the office building in which your business operates is essential. Unfortunately, these documents also tend to be very long and complex. The average commercial lease is 30 pages long, and filled with fine print which the typical business owner is not equipped to understand, much less negotiate. Unlike a landlord who drafts…READ MORE
Author:
McMillan Metro Editor
09/05/2012
In an effort to promote commercial success, most businesses rely upon contracts, generally written by attorneys, which contain the business’ “standard terms.” Proprietors are often told that these contracts are not negotiable, and they frequently sign such agreements regardless of the incredibly burdensome provisions. However, most of these provisions can be mitigated, if not completely…READ MORE
Author:
McMillan Metro Editor
05/31/2012
When reviewing and negotiating commercial leases there should be a discussion between the landlord and the tenant to address who should obtain the different types of applicable insurance coverages, the amount of coverage and which party will be responsible for paying the premiums. The answers to these issues differ depending upon the type of lease…READ MORE
Author:
Michael A. Faerber
07/18/2011
A 2010 Maryland Court of Special Appeals decision has changed how those who build and sell new residential condominium units in the State need to treat amendments to documents that are filed with the State of Maryland as part of their approved Public Offering Statements (“POS”). The Maryland Court of Special Appeals in Kristin Herlson v….READ MORE
Author:
Michael A. Faerber
04/07/2011
A landlord must be prepared to protect its rights as soon as it receives notice that its tenant is in bankruptcy. The Bankruptcy Code provides tenants in bankruptcy with the right to either reject or assume leases. This is a powerful right that can have a significant affect on a landlord that is not keeping…READ MORE
Author:
McMillan Metro Editor
09/24/2010
For those interested in Homeowners Associations and Condominium projects, the Maryland General Assembly passed several new laws in 2010 that will affect the drafting of new governing documents for these types of projects to include how administration, management and maintenance requirements are addressed by the developer while in control of the project and, thereafter, by…READ MORE
Author:
Michael A. Faerber
06/16/2010
Given the effect of the economy, many companies find themselves struggling to make rent payments. Companies may want to consider discussing rent abatement, rent deferrals and/or other concessions with their Landlords. The types of relief that may be available to a Tenant will differ depending upon a number of circumstances and each Landlord may react…READ MORE
Author:
Michael A. Faerber
11/03/2009
With the economic downturn affecting almost every aspect of business in the country, both Landlords and prospective Tenants need to be creative in structuring lease transactions that will work for both parties. Landlord’s need to be aware of getting proper security from a Tenant in the event the Tenant cannot remain economically successful in this…READ MORE
Author:
Michael A. Faerber
11/21/2008