Use Contractual Lien Provision When Leasing to Uncertain Tenants

In recent years, filling space at shopping centers with smaller, non-traditional tenants rather than large national stores (many of which are suffering financially) has been a successful strategy for landlords. If you’re taking advantage of this rapidly growing trend, you should be aware that, while in the short term it can boost profits, it carries a substantial amount of risk in the long term. That’s because many smaller tenants often have a limited—or sometimes nonexistent—financial track record.