Commercial Lease Diligence
February 28, 2015
This article reviews the recommended due diligence efforts of the purchaser's counsel with respect to leased commercial property, and elaborates on the pre- and post-closing rationales for completing such diligence review. The main focus of this article is the due diligence activities and rationale of counsel to a potential purchaser of all of the stock of a selling entity. Where relevant, it incorporates the alternate considerations that might arise in the context of an asset purchase or merger structure.
Problematic Lease Provisions: The Top Three Offenders
February 28, 2015
Both landlords and tenants of commercial property must be careful in preparing and signing leases. Beyond the financial considerations of the agreement, both parties must consider how to protect themselves before, during and after the term of the lease. Although every commercial lease is unique, there are three provisions that often create the most problems for landlords and tenants: self-help repossession provisions, restrictive covenants, and repair provisions.
Problematic Lease Provisions: The Top Three Offenders
February 28, 2015
Although every commercial lease is unique, there are three provisions that often create the most problems for landlords and tenants: self-help repossession provisions, restrictive covenants, and repair provisions. This article discusses those provisions.
NY's Highest Court Grants License to Change NY's Licensing Law
February 28, 2015
A year ago, York's highest court, the Court of Appeals, appears to have redefined and narrowed the limits of what distinguishes a license from a lease by expanding the scope of what may be deemed a license. In doing so, the court adopted an approach it had never previously used in such cases.
Will That Restriction Hold Up?
February 28, 2015
Given their critical nature to both parties, use clauses, exclusives and prohibited uses are among the most heavily negotiated provisions of any retail lease. As a result, the final draft may contain a number of compromises and vagaries that are understood only by the original parties involved.
In the Spotlight: Credit Tenant Lease Financing
February 28, 2015
While credit tenant loans represent a relatively small scope of overall financing transactions, they are a noteworthy addition to the finance realm due to their creative structures and strong performance. As various financial sources predict that the commercial real estate finance sector is expected to continue on its upward swing, there is a sense that a wider breath of financing structures will be attractive to lenders.
Rent Acceleration Clauses in New York
February 28, 2015
When is a rent acceleration clause in a commercial lease enforceable? The Court of Appeals recently addressed that question and gave an answer that is unlikely to be helpful to anyone but litigators: The court, however, provided little guidance about when a rent acceleration clause would constitute a penalty.
Leasing Strategies for the Semiconductor Industry
February 28, 2015
To begin, the semiconductor industry is, of course, enormous. The World Semiconductor Trade Statistics (WSTS) released its end-of-year market indicators, showing a solid growth of 9% to over US $333 billion in sales for 2014 over 2013, driven mainly by double-digit growth in the memory products category.
