Commercial Real Estate Leasing

This course examines the roll of the commercial real estate lease in investment and financing transactions. For the most part freedom of contract reigns supreme with respect to commercial leases; therefore, lease provisions will be examined that deal with the tenant's right to actual possession, the rental obligation, tenant's right to assign and sublease, tenant's right to make alterations, subordination to mortgages, the impact of condemnation and fire destruction, the repair obligations of the tenant and landlord, and the rights and remedies of the parties in the event of a default by either the tenant or landlord. The provisions of a landlord-oriented office lease will be analyzed in depth from a legal and business perspective. The impact of applicable statutory law (such as the prohibition of exculpatory clauses in N.Y.) and case law (such as the implied covenant of quiet enjoyment and the doctrine of constructive eviction) will be assessed in relation to the drafting and negotiating of such leases. Special provisions in shopping center and retail leases (e.g., co-tenancy clauses, percentage rentals, radius restrictions, exclusive use clauses) will be scrutinized and other types of leases will also be considered. Students will draft and negotiate on an office building lease as counsel to the landlord or to the tenant.
Credits: 2

Type: SEM