Reasons to Reevaluate REAs

Reciprocal Easement Agreements (REAs) among one or more developers, department stores, and, in the mixed-use context, owners of parcels devoted to non-retail uses, have rarely been formulaic. The initial draft typically takes into account site-specific requirements and the known requirements of the parties. It reflects any available business term sheet and often utilizes as a template a document previously agreed to by some or all of the parties. It is usually vigorously negotiated over a substantial period of time. However, a substantial portion of the business and legal negotiations frequently occur at or near the margins. Historically accepted norms as to the primary provisions are not frequently controverted.