Food Hall and Entertainment Use Leasing: Practical Considerations, Key Provisions for Landlords and Tenants

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


Conducted on Tuesday, June 4, 2019

Recorded event now available

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Program Materials

This CLE webinar will explore the unique issues facing both landlords and tenants negotiating leases for food halls and entertainment uses--from motion picture theaters to concert venues to sports arenas. Our panel will advise on how best to draft basic lease provisions, construction issues, percentage rent, co-tenancy, maintenance and other vital issues, and provide guidance on how to address the risks associated with such arrangements.

Description

One of the hottest new trends in the hospitality industry is the food hall. According to a 2018 Food Hall Report, the number of food halls in the United States has increased exponentially and will have more than tripled by 2020. Unlike the traditional shopping center food court, the food hall is typically an entertainment complex combining fine dining, bar atmospheres and live entertainment forums in one location.

Food halls bring unique legal challenges, including artful drafting of leases, supporting documents and operational rules that differ for each food hall facility.

Similarly, entertainment uses present additional and varied legal considerations relative to typical retail tenants. Theaters today are often accompanied by the sale of prepared food and alcohol. And other entertainment uses have entered into the scene, including indoor skydiving, golfing, escape experiences and even ax-throwing.

Entertainment uses present unique challenges to the landlord and the tenant to achieve the balance between allowing the tenant to operate its business while offering protection to the landlord to ensure the entertainment use does not interfere with the operations of the project. Parking, exclusive uses, prohibited uses, signage, visibility, access, noise and security are just some of many items that play a role in lease negotiations between a landlord and prospective entertainment tenant.

Listen as our panel of experts in real property transactions provides practical guidance on how to best address the issues and balance the interests of each party involved.

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Outline

  1. Introduction
  2. Food halls
    1. Structuring the deal
    2. Design, layout and construction
    3. Permitting considerations (i.e., alcohol permitting)
    4. Use and exclusive use clauses in a food hall environment
    5. Miscellaneous
    6. Replacing underperforming or poorly operated food stalls
    7. Structuring of tenant reimbursements
    8. Management of food hall tenants and patrons
  3. Entertainment uses
    1. Access and visibility
    2. Parking
    3. Construction and noise
    4. Percentage rent
    5. Co-tenancy
    6. Permitted uses
    7. Continuous operation
    8. Protected uses
    9. Prohibited uses
    10. Security
    11. Signage
  4. Practical considerations and best practices

Benefits

The panel will review these and other critical issues:

  • What are the practical considerations of entering into food hall or entertainment use leases?
  • What are the risks associated with such unique arrangements?
  • What are solutions to conflicts with REAs, covenants and existing leases?

Faculty

Colicchio, Phil
Phil Colicchio

Executive Managing Director
Colicchio Consulting, a Division of Cushman & Wakefield

Mr. Colicchio is an industry-leading expert in specialty food, beverage  and entertainment procurement. In his...  |  Read More

Hubsch, Allen
Allen W. Hubsch

Partner
Loeb & Loeb

Mr. Hubsch has been a real estate lawyer in Los Angeles for more than 30 years. He has maintained a diverse practice,...  |  Read More

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