Category Archives: Commercial Leasing

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The Importance Of Keeping Your Physical Office Location After The COVID-19 Pandemic

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: 07/20/2020

Why Am I Paying Percentage Rent In My Retail Lease?

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: 05/06/2020

What Is A Tenant’s Exclusive Use Clause?

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: 05/03/2020

Delays In Commercial Lease Negotiation Resulting From COVID-19: Address These Types Of Issues Up Front In Your Leases

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: 04/21/2020

How Do I Give Notice Under My Contract?

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: 04/02/2020

Acts Of God: Enforcing And Negotiating Force Majeure Clauses For An Emergency

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: 03/18/2020

Occupancy Permit – Whose Responsibility?

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: 05/23/2019

Beware of the “Harmless” Letter of Intent

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: 12/06/2013

Should I Convert My Commercial Building into a Condominium?

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: 09/24/2013

Medical Lease Negotiations: Ten Items to Consider

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: 05/15/2013

10 Things to Check Before Signing a Commercial Lease

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: 03/29/2013

Business-Owner Beware: Adverse Provisions in Commercial Leases

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: 09/05/2012

Beware of the Form Contract (Part One): Business-to-Business Terms and Conditions

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: 05/31/2012

2010 Maryland Laws Applicable to Homeowners and Condominium Associations

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: 06/16/2010

Commercial Lease Workouts – Issues to Consider During Initial Lease Negotiations and During the Leas

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: 11/03/2009

Making the Commercial Lease Deal Work in this Economic Environment

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: 11/21/2008