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The typical American shopping mall landscape has changed drastically—and for the worse—in recent years, in large part because nearly every item sold from a traditional brick-and-mortar store can be purchased online. Consumers who would rather devote time to things other than driving to a mall have benefitted. The retail behemoth Amazon.com even promises to deliver packages in two days. That has left lower end centers and malls in trouble.
Violating the Americans with Disabilities Act (ADA) can be costly for commercial real estate owners. It’s a complicated law with nuances that create pitfalls for owners. While the ADA is detailed in terms of spelling out under what circumstances a building’s or a tenant’s space must be altered to make it accessible to people with disabilities, it doesn’t say who is responsible for making and paying for these alterations. That is, are owners or tenants on the hook for ensuring that accommodations are made and any violations that stem from them?
Q: The office building I own is located in an up-and-coming neighborhood that consists of retail, office building, and residential apartment properties. It’s a so-called “upscale” shopping and living area, and I’d like to keep the appearance of my building attractive. However, a prospective tenant needs to install rooftop equipment to make its business function in the space it would lease from me.
Slip-and-fall accidents at commercial properties are, unfortunately, ubiquitous in the wintertime. As the owner of the property you’re likely to be pulled into any lawsuit. But whether you end up being financially responsible will be determined largely by whether it’s you or the tenant that is responsible for snow or ice removal. A recent New Jersey case demonstrates how the makeup of a shopping center—that is, whether it’s single- or multi-tenant in nature—is important to a court ruling on a case like this.
Unusual buildings—ones with “character,” a unique layout, or historic elements—can be wildly successful, but you’ll need to take into account marketing and leasing issues that may not be a factor when leasing traditional commercial properties.
Marketing your space effectively is key if you own a “quirky” property. Most businesses can operate out of traditionally configured space and don’t want or need to consider other properties. But that doesn’t mean that it will be impossible to find tenants to lease your unique space.
When listing your remedies in a lease clause—for example, the option to terminate the tenant’s lease if the tenant stops operating its business—always start with the phrase: “In addition to any other rights and remedies available to Landlord under this Lease or at law or in equity….” You should use this phrase because it gives you the right to resort to many types of remedies—not just the ones you’re listing in the particular clause.
Be careful when providing site plans to a tenant. It can accidentally lock you into plans for your center that you may want to change later without a hassle from the tenant. You never know what will happen that will require you to reconfigure any number of things at your property, and you need the freedom to do so.
The number of violent crimes taking place at public venues in recent years has skyrocketed, with the Oct. 1 mass shooting of concert-goers in Las Vegas being the biggest attack in United States history. Owners of public spaces are reevaluating their security, some by asking outside security firms to review their security systems and make recommendations for improvement.
The holiday shopping season—and its positive and negative effects on your property—won’t let up until the New Year. But you can start to prepare for a major issue, the inevitable increase in foot traffic at your shopping center, now by addressing two issues: traffic and time.
It’s important to keep your office building or shopping center property in its best condition. This includes aesthetics—especially if it’s a Class A property or is located in an “upscale” neighborhood. But what can you do when a valuable prospective tenant needs to install rooftop equipment to make its business function in the space it would lease from you, and you’re afraid the equipment will bring down the building’s appearance?