Commercial Lease Due Diligence in Real Estate Acquisitions: Key Issues and Best Practices
Buildout Obligations, Termination Rights, Purchase Options, Co-Tenancy, Rental Terms and More
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will prepare real estate counsel to evaluate lease provisions that may significantly affect the purchaser of commercial real estate. The panel will discuss the importance of tenant estoppels and provisions on tenant buildout, termination rights, expansion rights, purchase options, co-tenancy, "go dark," and other provisions.
- Lease review—economic terms
- Rental terms—percentage rent, rent abatement
- Allocation of taxes, insurance, maintenance, and other expenses between landlord and tenant
- Comparing tenant estoppels, leases and rent roll, and resolving inconsistencies
- Lease review—key legal provisions
- Tenant improvements—landlord obligations
- Use restrictions and noncompete provisions
- Renewal/expansion options
- Early termination clauses
- Purchase options and rights of first refusal
- Continued operation—"go dark" provisions
- Co-tenancy provisions
- Parking requirements
- Assignment and subletting
- Subordination, non-disturbance and attornment
The panel will review these and other relevant issues:
- What are best practices for confirming the income and expenses of the property?
- What remaining tenant buildout and other obligations will the purchaser be taking on as successor landlord?
- Do any tenants have termination, purchase option, "go dark," or similar rights impacting the lease or the operation of the property?
- Can the purchaser comply with all use restrictions, noncompete, co-tenancy, and parking requirements contained in the leases?
Hannah Dowd McPhelin
Troutman Pepper Hamilton Sanders
Ms. McPhelin concentrates her practice in real estate matters and other business transactions, including the... | Read More
Ms. McPhelin concentrates her practice in real estate matters and other business transactions, including the acquisition, sale and financing of commercial real estate properties and leasing of office, retail, warehouse and industrial space, representing both landlords and tenants. She is a LEED® (Leadership in Energy and Environmental Design) Accredited Professional and a member of the firm’s Sustainability, CleanTech and Climate Change Team.Close
Matthew J. Swett
Mr. Swett is chair of the firm’s Real Estate Practice Group, where he handles a variety of real estate matters... | Read More
Mr. Swett is chair of the firm’s Real Estate Practice Group, where he handles a variety of real estate matters and other business transactions. He concentrates his practice in the acquisition, sale, development, leasing and financing of commercial real estate properties, representing real estate investment managers, entrepreneurial developers and national retailers. Among other clients, he represents private real estate investment management funds. He also represents national retailers in connection with acquisition and leasing of retail sites, the expansion and relocation of existing retail locations, office space and build-to-suit distribution centers. This work includes the negotiation of related development agreements as well as agreements for easements, covenants and restrictions. In addition, he represents manufacturers in connection with build-to-suit leases for manufacturing, warehousing and office facilities.Close