The City just imposed new “fire prevention and sprinkler” requirements. The 100,000 square foot warehouse space now needs to be upgraded. The lease is only for three more years, the upgrade cost is $250,000. The lease said the Tenant was responsible for maintenance and code compliance. The Tenant says this is a capital improvement – which would be on the Landlord. Who pays?
The Lease contains an ‘option’ to purchase, and the Tenant wants the building at the (now, below market) option price, while the Landlord wants to get market price. What happens if the option provisions are not performed *exactly* as they are written? (One side or the other calls us…)
The old warehouse was rented for pennies a foot. Then, just got zoned for cannabis use. The lease is for 15 more years. The Tenant wants to sub-lease and get what might be 50% more rent than she has to pay. The Landlord wants that upside – and issues a notice of default – because the Tenant is sub-leasing for an ‘illegal’ purpose. Who wins this fight?
These are just a few examples of how and when a commercial lease dispute can arise. And when one does, remember that – in a past life – Christopher Hanson worked as a commercial real estate broker (he still has his CCIM credential). He and the team at HLF have been there and done that. The team has the expertise to negotiate or litigate through these situations.
