Thursday, November 29, 2018

Leasing Nightmares: Avoiding Lease Problems Before Opening for Business

Modern Restaurant Management
While much thought and consideration during lease negotiations is given to protecting a tenant from its landlord’s acts or omissions during the lease term, some of the most commonly-encountered issues after lease execution pertain to the earliest stages of the landlord-tenant relationship, specifically the phase where the parties are preparing and exchanging plans for the premises, obtaining construction and use permits, and building out the space for the tenant’s use – all of which should occur well before a tenant actually opens for business at the premises and begins paying rent.

If a tenant’s lease is not carefully negotiated, a tenant may find itself bound by lease for premises in which it can’t successfully operate or it may be required to start paying rent well before it’s open for business and generating revenues. . . . more