Commercial Lease Assignments and Subleases: Negotiation Strategies in a Troubled Market

Best Practices for Landlords, Tenants, Subtenants and Assignees to Avoid Legal Pitfalls

Recording of a 90-minute CLE webinar/teleconference with Q&A


Conducted on Thursday, March 25, 2010
Recorded event now available


This CLE webinar will provide best practices for counsel to landlords, tenants, subtenants and assignees to negotiate and craft subleases and assignments in the current market. The panel will review the benefits and risks of assignments and subleases of commercial leases and the legal distinctions of each option.

Description

Commercial tenants continue to vacate leased space in record numbers. Some tenants make good faith efforts to transfer their leases to other businesses via assignment or sublease. Business owners view this trend as an opportunity to find better space with shorter terms and lower rents.

Landlords, tenants, subtenants and assignees must analyze the advantages and disadvantages of each option in deciding whether to sublease or assign a lease. There are implications for each party under tax and bankruptcy codes, contract law, landlord-tenant law, and financial reporting requirements.

Subleases, more complicated to negotiate than assignments, involve a number of potential legal pitfalls for the parties. Relying on boilerplate language when entering a sublease is a dangerous mistake with costly consequences for all parties.

Listen as our panel of real estate attorneys examines the potential legal pitfalls of negotiating commercial subleases and assignments and offers strategies for landlords, tenants, subtenants and assignees when negotiating assignments and subleases in a still depressed real estate market.

Outline

  1. Current market trends
    1. Supply vs. demand
    2. Lease terms and renewals
    3. Tenant bankruptcy
  2. Distinctions between assignment and sublease
    1. Legal differences
    2. Drafting differences
    3. Pros and cons of each option
  3. Key considerations/best practices when negotiating assignments and subleases
    1. Landlord perspective
    2. Tenant perspective
    3. Subtenant/assignee perspective

Benefits

The panel will review these and other key questions:

  • What are the most significant legal differences between a commercial sublease and assignment?
  • What are the primary concerns for tenants considering subleasing their current space?
  • What lease terms should subtenants be most concerned about when negotiating a sublease?
  • How can a landlord respond when a tenant breaches a prohibition on assignment or subleasing?

Faculty

Dorothea W. Dickerman, Partner
McGuireWoods, McLean, Va.

She has more than 25 years of experience in commercial real estate law and real estate finance. She has extensive leasing experience representing landlords and tenants in commercial leasing, negotiating retail, restaurant, hospitality, office and industrial leases in rising and falling markets.

Ruth A. Schoenmeyer, Of Counsel
Jenner & Block, Chicago

She has extensive experience representing landlords and tenants in leasing transactions, including leases relating to office, industrial and retail properties. She has also drafted and negotiated numerous ground, build-to-suit and airport leases. She provides corporate real estate services to various companies and facilitates the purchase, sale and development of properties of various sizes.

Elizabeth K. Cooper, Esq., Managing Director - Brokerage
Jones Lang LaSalle, Washington, D.C.

She co-chairs the company’s Law Firm Group and leads the Strategic Transaction Service Group. She has completed over five million square feet of law firm leases. Prior to joining Jones Lang LaSalle, she practiced law for nearly 10 years. She is a member of the Board of Editors of Commercial Leasing Law & Strategy and actively writes and speaks on lease/purchase issues to various legal groups.

Ordering

Online CLE - Audio Recording

Includes audio streaming of full program plus handouts (available 24 hours after live seminar).

CLE: Pre-approved for participatory or non-traditional/alternate format credit in: CA, HI*, NY*, WV*. Pre-approved for self-study credit in: AK, AZ, FL, MO, MT, TX, VT, WA.
Upon request, also available in: CO, CT*, GA, ID, KY, LA*, ME, NC, ND, NE, NH, NM, NV, OR*, SC, TN, UT, WI, WY. If you are applying for credit in one of these states, make sure to select those states when placing your order.
(*Indicates that Strafford must report attendance.)

Online CLE Audio $149.00
Available 24 hours after the live event

How does this work?


Recorded Event

Includes full event recording plus handouts (available after live seminar).

CLE: Pre-approved for self-study credit in: AK, AZ, CA, CT, FL, HI, MO, MT, NY, TX, VT, WA, WV. Upon request, self-study credit is also available in: CO, GA, ID, KY, ME, ND, NE, NH, NM, NV, OR, UT, WI, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com.

Webinar Download (Slide Presentation with Audio) $49.00
Available three business days after the live event

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DVD (Slide Presentation with Audio) $49.00 plus $9.45 S&H
Available ten business days after the live event

MP3 Download (Audio with Slide PDFs) $49.00
Available 24 hours after the live event

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CD (Audio with Slide PDFs) $49.00 plus $9.45 S&H
Available ten business days after the live event

Webinar/Teleconference

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Program Materials

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Program Materials

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Customer Reviews

The presentation was not too long, but included a great deal of information. The speakers kept to their times and provided an opportunity for questions at the end.

Amy E. McShane

Phillips Lytle LLP

The program covered a fair amount of material in a short time period.

Dawn Sharff

Bradley Arant Boult Cummings LLP

Very good current, practical and applicable discussion and information provided.

Matthew Moore

Clawson & Staubes, LLC

I appreciated that there was a great deal of current case law on the subject and the speakers were concise and informative.

Thomas G. Mancuso

Haskell Slaughter

The seminar was given in a very user friendly presentation format.

Danielle Burns

Duane Morris LLP

or call 1-800-926-7926

Real Estate Law Advisory Board

David A. Barksdale

Partner

Alston & Bird

Jacob Bart

Partner

Stroock & Stroock & Lavan

Brian W. Blaesser

Partner

Robinson & Cole

Ronald B. Grais

Of Counsel

Jenner & Block

Ren R. Hayhurst

Partner

Bryan Cave

Thomas C. Homburger

Of Counsel

K&L Gates

Susan C. Tarnower

Counsel

Kilpatrick Townsend & Stockton

Clark T. Thiel

Partner

Jones Day

or call 1-800-926-7926

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