Thursday, December 13, 2007

What Happens When a Commercial Landlord is Sued for An Injury on the Leased Premises?

While it is possible for a commercial landlord to be liable to a third party for injuries caused by a dangerous condition in a tenant’s leased premises, most commercial landlords take steps to shift this potential liability to the tenant. Usually, the commercial landlord will require the tenant to maintain general liability insurance for the leased premises and name the landlord as an addition insured. Commercial landlords also usually require the tenant to indemnify the landlord for injuries to visitors to the leased premises. In any event, a commercial landlord or tenant who is being sued should immediately contact a commercial real estate litigation attorney.

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Wednesday, December 12, 2007

4 Important Commercial Lease Provisions

Before entering into a commercial lease, there are at least 4 things a landlord and tenant should consider. Consider the following:

1. Lease Commencement Date. The landlord and the tenant's interest widely vary here. The landlord wants the lease commencement date to be as early as possible while the tenant wants to delay the lease commencement date until it is able to occupy the leased premises.

2. Payment of Tax and Operating Expenses. Generally, the landlord wants to pass through all of the buildings operating costs to the tenant. Therefore, the landlord will want to use as broad of language as possible to include all known expenses as well as those expenses that the parties did not contemplate at the time the lease was created.

3. Assignment and Subletting. Assignment and subletting provisions govern the tenant's ability to transfer its leasehold interest. Naturally, the tenant desires the ability to assign or sublet the premises at its option. The landlord, however, prefers to maintain control over who its tenant is. Generally, the landlord is concerned about the economic ability of any proposed tenant to pay rent. There are also certain damages issues that relate to whether the tenant has a right to assign or sublet its lease.

4. Damage and Destruction. These provisions determine the risk of loss due to unforeseen occurrences. The tenant will want the ability to terminate its lease in the event of loss or destruction of the leased premises. The landlord, in turn, will want to enforce the lease while it makes repairs.

These four items are just a few of the many negotiating points a commercial landlord and tenant face prior to entering into a commercial lease. It is important to understand these, as well as the other key commercial lease provisions, by talking to a commercial real estate attorney, prior to entering into a lease for commercial space.

Sunday, December 9, 2007


Welcome to Land & Lease a legal blog dedicated to providing valuable information to businesses and individuals seeking a topical discussion of commercial real estate issues by a West Los Angeles based real estate attorney and member of Schorr Law, A Professional Corporation ( This site, an open forum, allows for a discussion of current issues, like the President Bush's mortgage bail out plan, to issues that business commonly face with their commercial leases and commercial property.