Commercial Lease Economics: Responding to the Current Real Estate Market

Description

The financial crisis has impacted the value, terms and risks of commercial real estate leases. The trend toward “going green” affects how many commercial office buildings are constructed, operated and managed.

Counsel for landlords and tenants must understand how current market factors affect the economics of commercial leases, how provisions should be drafted or modified to accommodate those factors, and the impact on a landlord’s strategy for lease enforcement.

Listen as our panel of real estate attorneys and a broker explains the impact of current market dynamics on commercial lease economics and outlines best practices for counsel to landlords and tenants for negotiating, renegotiating and enforcing commercial leases.

Outline

1. Current market dynamics
   1. Supply vs. demand
   2. Concession packages
   3. Economic incentives
   4. Terms and Renewals
   5. Speed
2. Reviewing the fundamentals — key economic provisions in leases
   1. Rent
   2. Operating costs, Stops, Base Years
   3. Gross-up clauses
   4. “Green” leasing and its associated costs
3. Key considerations when negotiating, renegotiating or enforcing a lease
   1. Landlord’s and tenant’s economic status
   2. Lenders
   3. Anticipating adverse economic conditions
   4. Remedies for default, including workouts and concessions
   5. Potential bankruptcy of landlord or tenant
4. Best practices for negotiating or renegotiating economic provisions
   1. For tenants
   2. For landlords

Benefits

The panel will review these and other key questions:

• How are current economic conditions impacting the commercial real estate leasing industry?
• What provisions should be included in commercial real estate leases to anticipate adverse economic conditions?
• What strategies should the landlord and tenant use in the event of a lease default — enforce the existing lease and possibly terminate or renegotiate terms with the tenant?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

CLE Credit

Strafford's live seminars qualify for CLE in every state that accredits webinars. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.

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