Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
De Facto Holdover
Imagine a potential industrial tenant visiting a property only to discover workers in hazmat suits in the midst of an environmental remediation project; or the impact of having a prospective tenant find building code violations or lingering evidence of flood damage. Not exactly the ideal scenario for a landlord looking to market its property, but not an unheard-of circumstance, either. The reason is that too often, surrender provisions in today's commercial leases are not adequately coordinated with the landlords' marketing needs, and lack adequate remedies to ensure compliance by tenants at the end of their lease terms. A continuing stream of rental income is the key to the success of any commercial property and it is critical for landlords to take proactive steps to protect the continuity of that income. Landlords can do just that by requiring tenants to comply with some of their typical “surrender” obligations well before the end of their lease terms, by viewing non-compliant tenants as de facto holdovers and invoking remedies traditionally applied when a tenant fails to move out at the end of its lease term.
Because it takes time to find a new tenant, commercial leases generally include a number of clauses designed to give the landlord the opportunity to minimize any interruption in that stream of rental income caused by the transition between tenants. For example, the landlord is usually permitted to post “for rent” signs and show the premises to potential new tenants during the last year of the term so the landlord can identify a new tenant before an existing tenant's lease expires. Also, the existing tenant is usually required to “surrender” the premises in good condition at the end of its lease term in order to minimize the time and expense for the landlord to prepare the premises for a new tenant. If the existing tenant does not vacate the premises at the end of its term, the landlord can usually declare the tenant a “holdover” in order to collect damages and charge the tenant a multiple (usually 150% or 200%) of its rental rate until the tenant vacates the property.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.