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Retail Law Advisor

Category Archives: Leasing

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End Of An Era Or Simply a Moment In Time?

Posted in Landlords, Leasing, Real Estate, Retail, Retail Sales, Tenant

What conclusions can we draw from the increasing vacancy rates in prime NYC retail real estate?  A momentary blip? Something we’ve seen many times before, only to be followed by the inevitable climb in rents to their customary stratospheric levels? Analysts claim that rents in the retail sweet spot of Madison Avenue between 57th and… Continue Reading

ICSC Mid-Atlantic Conference & Deal Making Recap

Posted in Landlords, Leasing, Real Estate, Restaurants, Retail, Tenant

With seemingly all of the country’s attention focused on Washington DC lately, we snuck out of the District and across the Potomac River to National Harbor last week for ICSC’s 2017 Mid-Atlantic Conference and Deal Making. The conference was very well attended, and the mood among attendees and presenters was generally upbeat. Anecdotally, the sentiment… Continue Reading

Oh the Sidewalks Outside Are Frightful, But Landlords Will Make Them Delightful… or Will They?

Posted in Compliance, Landlords, Leasing, Real Estate, Retail, Tenant

Although we haven’t seen much snow accumulation in the northeast to date, we know that this can (and likely will) change before the warmer weather returns. Before the snow really begins to fall, it would behoove both landlords and tenants to become informed about their snow clearing responsibilities and to ensure removal plans are in… Continue Reading

Upscale Food Halls—On Trend and On The Rise

Posted in Landlords, Leasing, Real Estate, Restaurants, Retail, Retail Sales

The growth of high-end food halls is taking off around the country as consumers seek fast, fresh, high-quality, chef-driven meals with a local touch, and as landlords seek to cash in on the continued growth of fast-casual dining. These boutique-style, upscale food halls are modeled more after famous European markets like Barcelona’s Mercado de la… Continue Reading

Are Prohibited Uses Prohibiting Opportunity?

Posted in Landlords, Leasing, Retail, Tenant

Despite how it may sometimes seem when in the throes of negotiating a lease between a shopping center landlord and a retail tenant, the overarching goals of the two parties are aligned. Both parties want the tenant to be successful and want the landlord’s shopping center to be active and vibrant, filled with “hot” tenants… Continue Reading

New Lease Accounting Rules Are Final: Retailers and, Ultimately, Landlords Can Expect Changes

Posted in Landlords, Leasing, Real Estate, Retail, Tax

We recently wrote about expected changes to the rules governing the way leases are accounted for on balance sheets and suggested the changes would have major implications for retailer tenants and longer term implications for landlords. Late last week, as expected, the Financial Accounting Standards Board (“FASB”) issued a suite of now final rule changes… Continue Reading

Change in Lease Accounting Rules to Have Major Impact for Retailers, and Ultimately, Landlords Too

Posted in Landlords, Leasing, Retail, Tax, Tenant

Rules governing the way leases are accounted for on balance sheet rules are expected to change in the first quarter of 2016 with major implications for retailer tenants and longer term implications for landlords. Today, real estate leases are generally not accounted for on most tenants’ balance sheets. That is, such leases are regarded as… Continue Reading

A Case of Caution: the Effect of Redevelopment on Existing Mall Leases

Posted in Development, Landlords, Leasing, Real Estate, Retail, Tenant

In a follow up to our other posts regarding the White Flint Mall redevelopment, the jury has reached a verdict. Until recently, White Flint Mall in Bethesda, Maryland was a prime example of retail mall success. However, as the mall began to lose tenants and customers, its owner decided to redevelop the mall into a… Continue Reading

Blowdryers and Flatirons: The Real Estate Market Heats Up with Salon Suites

Posted in Landlords, Leasing, Real Estate, Retail, Tenant

For years the price of entry for solo entrepreneurs in the health and beauty category was high. With similar fixed startup costs as any professional practice would have, such as real estate, insurance, supplies, but with much slimmer profit margins, stylists and aestheticians were often relegated to renting chairs from established salons or working for… Continue Reading

Pop-up Retail

Posted in Landlords, Leasing, Retail, Tenant

Picture this: you’re the owner of a building in a bustling downtown hub and you find yourself with vacant retail space in a highly visible location. The previous tenant just left and you are still looking for the right long-term tenant, though you suspect the search could take several months. Or perhaps you are considering… Continue Reading

Liquor Licensing Changes in Massachusetts Impact Landlord-Tenant Relationships

Posted in Landlords, Leasing, Restaurants, Retail, Retail Sales, Tenant

Retail landlords and tenants are heavily impacted by recent changes in liquor licensing forms generated by the Massachusetts Alcoholic Beverages Control Commission (ABCC) and increased background investigations related to license applications. Although Massachusetts restaurant and package store operators have long been accustomed to disclosing financial, operational and personal information to the ABCC to obtain their… Continue Reading

Proposed Changes to Lease Accounting Rules Impact Balance Sheet and May Lead to Loan Covenant Violations

Posted in Leasing, Real Estate, Retail

On May 16, FASB and the IASB announced the issuance of a new exposure draft of the proposed lease accounting rules which will have a major impact on the retail industry. This is the second major iteration of the proposed changes. (For those who may not have been following this issue, see Schmitt, Demystifying the… Continue Reading

Recent Decisions Potentially Expand Scope of Landlords’ Bankruptcy Claims Beyond the Rent Cap

Posted in Bankruptcy, Landlords, Leasing, Tenant

When a tenant files for bankruptcy and rejects its lease, the Bankruptcy Code limits a landlord’s rejection claim to the amount of any unpaid rent and rent-related charges accrued prior to the tenant’s bankruptcy plus future rent and rent-related charges (e.g., common area maintenance charges, real estate taxes) reserved under the lease (without acceleration) for… Continue Reading

Retail Business Incubators Bolstering Local Economies

Posted in Leasing, Municipalities, Retail

Vacancy rates are still well above historic levels in neighborhood and community shopping centers and on “main streets” nationwide — a lingering effect of the economic downturn in 2008-2009 . In response, some retail owners, nonprofits and municipalities are experimenting with retail business incubators as a means to fill vacancies and bolster the local economy…. Continue Reading

Landlord Considerations: Medical Marijuana Cultivation Centers and Dispensaries

Posted in Landlords, Leasing

On March 30th the District of Columbia Department of Health announced the first group of businesses that are eligible to establish marijuana cultivation centers as part of the District’s medical marijuana program. The businesses that will be eligible to establish marijuana dispensaries are expected to be announced in late June. The implementation of D.C.’s medical… Continue Reading

Sustainability in the Retail and Restaurant Industry: An Imperative and an Opportunity

Posted in Development, Green, Leasing

Once motivated purely by altruism, sustainable retail development and building operation are increasingly encouraged by both governments and market conditions, if not explicitly required by law. Sustainability presents attractive opportunities to the retail and restaurant industry despite its unique challenges, such as significant interior and exterior demands, management of substantial refrigeration loads associated with food… Continue Reading

Back Bay Blackout

Posted in Landlords, Leasing, Tenant

Hope for the best but prepare for the worst. Fires, natural disasters such as floods, hurricanes and earthquakes, and extended power outages can become dangerously “hypothetical” in the heat of a retail lease negotiation. But just ask landlords and retail tenants in Boston’s Back Bay, Chinatown, Theatre District, Kenmore Square and the South End about… Continue Reading