Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The Modified Anchor Tenant in Enclosed Regional Malls
As traditional department stores and so-called “anchor” tenants in enclosed regional malls are closing stores and limiting their expansion in the marketplace, landlords are seeking alternatives to the traditional department store or anchor store to occupy space in their shopping centers. (“Anchor tenants” can be defined as those selling a wide assortment of goods and occupying more than a certain number (e.g., 50,000) of contiguous square feet of floor area.) These anchor-tenant alternatives — referred to in this article as “Modified Anchor Tenants” or “MATs” — are often defined as follows: A collection of multiple tenants that in the aggregate occupy the lesser of:
- Fifty percent (50%) of the square footage occupied by the former anchor on the first level of the enclosed mall; or
- At least [xxx] square feet of space.
One of the key elements in this definitional term is that the MAT does not need to occupy the same square footage that the anchor tenant was supposed to occupy when the in-line tenants' leases were originally negotiated, nor does this MAT need to consist of only one tenant.
If a tenant has an existing lease that was negotiated with the understanding that a department store or other anchor store was going to be in operation within the mall, replacement of such with a Modified Anchor Tenant creates fundamental problems. After all, anchor tenants frequently lease under more favorable terms because they are the anchor.
The underlying rationale for treating an anchor tenant or a department store differently from other tenants in an enclosed regional mall is that this tenant is deemed to bring traffic to the shopping center and to create a synergy with the in-line tenants, so that shoppers obtain a cross-section of goods during their visit to the enclosed regional mall. For that reason, in-line tenants are often willing to agree that landlords will treat anchors and department stores differently, both in their contributions to operating costs and real estate taxes, and in the rights provided to these types of tenants. However, if a Modified Anchor Tenant does not need to consist of one tenant selling a varied array of goods — which replacement tenancies may or may not attract the same consumer traffic to the shopping center that all parties contemplated — in-line tenants may not be as willing to concede that these MATs should be treated differently when it comes to shared costs and landlord-granted rights.
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
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?