Traditionally, retail tenants have sought to include provisions in their leases explicitly giving them the right to audit landlords’ books, particularly with regard to common area maintenance (CAM) charges. However, case law suggests that a retailer may not be out of luck if its lease is silent as to audit rights. Tenants should also be aware that even where audit rights are set out in a lease, landlords often insert restrictive clauses that seek to limit tenants’ rights to recover overcharges in court.
Continue Reading The Effect of CAM Audit Clauses in Retail Leases
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What Happens When Your Landlord Is Self-Insured?
By Gregory D. Call on
Posted in Real Estate
Like any charge under a retail lease, insurance charges can be the source of disputes between retail tenants and their landlords. Special concerns arise when the landlord chooses to self-insure against certain risks. It is not uncommon for a large landlord to self-insure at least a portion of its insurance obligations or for a landlord …
Retailers Look To Cut Costs By Enforcing Co-Tenancy Provisions
By Gregory D. Call on
Posted in Real Estate
As retailers continue to close underperforming stores and look for other ways to cut costs in a weak economy, they are closely monitoring and enforcing co-tenancy provisions in retail leases.
The language of the lease is critical in co-tenancy disputes. Issues that arise include:
- What conditions trigger a tenant’s co-tenancy rights? Closure of anchor stores? Closure of stores occupying a certain percentage of the leasable space in the mall?
Continue Reading Retailers Look To Cut Costs By Enforcing Co-Tenancy Provisions