The franchise has become ubiquitous throughout the country and the world and, yes, even in cosmopolitan New York. Some recent statistics may be worth citing: There are an estimated 1,500 different franchisors (franchise business companies) operating in the U.S., employing more than 8 million people and generating some $782 billion in revenue. The franchise industry Read More
By Jeffrey Margolis 1/22 6:00am
With Obamacare dominating the headlines, doctors (yes, and dentists, too) have gotten more than their fair share of publicity lately. For those of us in commercial leasing, that also brings to mind the business of running a medical or dental practice and the need for suitable office space—a lease that properly addresses the med/dent professional’s Read More
By Jeffrey Margolis 1/08 7:00am
There is a special symbiotic relationship between shopping center landlords and tenants, with each looking to the other to promote the “product.” The same holds true for the tenant and other tenants of the shopping center. Let’s look at one unique-to-retail hot-button benchmark: co-tenancy clauses.
Co-tenancy: Tenant’s obligations (especially rent) are subject to the opening/operating Read More
By Jeffrey Margolis 12/18 7:00am
O.K., before the International Council of Shopping Centers came to town, we were talking about a myriad of deals—nowadays, mostly office buildings and hotels (and yes, shopping centers too) are being financed at very low rates using EB-5 immigration visa program funding.
Again, the basics: Invest $1 million (typical individual investment) in a U.S. business, Read More
By Jeffrey Margolis 12/11/13 3:21pm
There is a special symbiotic relationship between shopping center landlords and tenants, with each looking to the other to promote the “product.” But negotiations of lease terms are often contentious. With NY’s National ICSC in full swing, let’s look at one unique-to-retail hot-button benchmark: exclusives.
Now, how do you define “exclusive?” It’s when the tenant Read More
By Jeffrey Margolis 12/04/13 7:00am
What do real estate and green cards have in common?
The Brooklyn Navy Yard, the Sky Hotel outside Seattle, Steiner Studios in Queens, Jay Peak Resort in Vermont and Gary Barnett’s Diamond Building on 47th Street all have something in common: EB-5 visa program funding.
With conventional financing unavailable or very expensive, this program gives access Read More
By Jeffrey Margolis 11/27/13 7:00am
From the mundane notice concerning window cleaning to a notice of default for nonpayment, the boilerplate notice clause in the lease has to be strictly followed to make the notice effective.
Two of the biggest challenges leasing lawyers face is determining when to give an effective notice under a lease and determining when that notice Read More
By Jeffrey Margolis 11/20/13 7:00am
“We need to lay-off three or four rooms in the new suite we’re renting, so let’s have a form of sublease—or is it a license?—ready to go.”
As the above words were uttered by an experienced lawyer, we can safely say that the distinction between a real estate lease and license has had smart Read More
By Jeffrey Margolis 11/13/13 7:00am
With props to Rodney Dangerfield, some legal documents just don’t get no respect—or at least are not regarded with the importance deserved.
That innocuous looking two-page form that the landlord just sent to you, saying that in connection with a refinancing its lender has requested you sign an estoppel certificate certifying various facts about the Read More
By Jeffrey Margolis 11/06/13 7:00am
In this edition of Dirt Law I’m looking at the distinct financial peril assumed by a commercial tenant who prematurely vacates its space and simply depends on the landlord to promptly re-rent and so mitigate its losses.
The bottom line here was set in judicial stone nearly 20 years ago when New York’s highest court, Read More
By Jeffrey Margolis 10/30/13 7:00am
The Letter of Intent, or LOI, has become ubiquitous in New York leasing, especially in larger transactions where the document itself will be of substantial complexity.
It’s used to initiate transactions and is designed to set forth in some cogent way the terms and conditions of the proposed deal. Usually drafted by the broker, it’s Read More
By Jeffrey Margolis 10/23/13 7:00am
Last week, we took a look at the evolution of lease guaranties from full-blown general personal guaranties to the limited, now favored “good guy” guaranty. In a nutshell, a good guy guarantor stepped up to the plate to assure the landlord that the space would not be milked for rent, and the quid pro quo Read More
By Jeffrey Margolis 10/15/13 2:00pm
“…and, of course, we’ll need the “‘standard’ good guy’ from the CEO”
A few years ago, I wrote a piece speculating that while the term was ubiquitous in our leasing community, no one knew what a standard good-guy guarantee looked like. That didn’t surprise me as I concluded there was no such animal. It all Read More