COLD WEATHER MAINTENANCE

Cold temperatures can reach areas of your facility that you seldom visit or cannot see, such as crawl spaces, closets, enclosed spaces (e.g., attics, lofts, roof spaces), and isolated storage areas.  Preparing for cold weather can help reduce potential business interruptions and related losses resulting from cold temperatures.  In severe cold, domestic water pipes have the potential to freeze and break.  If it’s safe to do so, make sure pipes that are in isolated or poorly heated spaces are shut off and drained or protected with a supplemental heating source.

 Protect your fire protection sprinklers by ensuring that wet piping systems are sufficiently heated to prevent freezing.  Severe cold weather can also delay the response time of the local fire department. It’s imperative to properly maintain your fire protection systems.  If heating is lost in a building protected by wet sprinklers, it should be restored immediately.  Sprinkler systems should be shut off and completely drained only after exhausting all options to re-establish sufficient heat.  If this is necessary, be sure to take appropriate precautions, including notifying local fire officials.

 Strategies to Help Prevent Frozen Pipes: 

 *Properly insulate and/or provide approved heat tracing for water-filled pipes located in exterior walls or unheated spaces.

*Drain any piping that is not required during the winter months.

*Maintain a minimum temperature of 40° F (4.4° C) in building areas with systems and structures susceptible to freezing, like wet-pipe sprinkler systems, fire pump houses and dry-pipe valve enclosures.

*Ensure that anti-freeze sprinkler systems have sufficient concentration (appropriate specific gravity readings) of antifreeze to withstand freezing weather.

*Inspect dry systems to help ensure air settings are correct, air maintenance systems are in good operating condition, and any pipe closets are well insulated. If heat tape or heating systems are being used, ensure that they are UL-listed for this specific purpose and are in good operating condition. Dry-pipe sprinkler systems low points and auxiliary drains should be opened and drained of any water or condensation.

*Any branch lines on wet sprinkler systems exposed or subject to extreme cold weather should be insulated and heat traced. Electric heat tracing products should be UL-listed for this specific purpose.

*Fire pump test headers should be checked to ensure they have been properly drained.

*Fire pump and dry-pipe sprinkler system equipment rooms should be checked routinely to ensure the heaters are in good operating condition.

*The use of low temperature monitoring solutions can help to ensure rooms are being properly heated. 

* Contact your insurance agent to discuss your specific coverage needs to protect your business.

 For more information see https://www.travelers.com/resources/business-topics/facilities-management/preventing-frozen-pipes-for-businesses

Tips For Leasing Commercial Space During the Holidays

The holidays will slow the commercial lease process down even more.  You pretty much lose a week for Thanksgiving in November and 2 weeks in December for Christmas and New Years.   Many tenants think that leasing commercial space during the holidays will be faster since they have more time and things tend to slow down.  However, most of the people needed to provide information and finalize a commercial lease transaction are mostly unavailable during the holidays.  Below is a list, according to TenantAdvisors.com, of helpful tips on leasing commercial space during the holidays.

Tips For Leasing Commercial Space During the Holidays

1. Negotiate more time for build out before the rent commencement date begins.  If you are counting on important items to be completed during the months of November and December, you need to incorporate some sort of contingency in your time frame.  Expect and plan for delays.  Maybe add another month or two to the rent commencement date and insert language in the lease to appease the landlord that you will occupy and start paying rent as soon as work is completed, and you have a certificate of occupancy.

2. Find out who will be available during months of November and December and If you are in the middle of negotiating the lease contract, find out exactly when the attorneys will be available and set deadlines for responses.  Same goes for your contractors.  Find out when they are available and only work with ones who will commit to being available during those months.

3. Confirm the city’s holiday schedule.  If you are relying on the city for inspections and a certificate of occupancy, then make sure you stay connected with those contacts and be sure to know what their holiday schedule will be.

4. Communicate with your existing landlord if applicable.  There is a chance that you don’t get your CO in the new space and end up holding over in your old space for another month or two.  Be sure to communicate often with your existing landlord.

4. Communicate well with everyone involved and do so often.  Try not to rely on email alone.  Be sure to coordinate conference calls with key players to ensure everything is moving according to plan.

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

“Quiet Enjoyment”

What is the right to “Quiet Enjoyment” in a commercial lease?  In an article about quiet enjoyment*, it explains that quiet enjoyment is a covenant that promises that you will not do anything to interfere with a tenant’s reasonable use and enjoyment of their leased premises and that you will ensure that a tenant’s use and enjoyment of the property will not be disturbed.  Commercial leases usually contain a very specific quiet enjoyment clause.  In a commercial lease the quiet enjoyment clause can be modified or even waived .  For that reason, quiet enjoyment in a commercial lease is determined by the specific terms of that lease.  Because commercial leases are more variable in their terms and because of the larger investment made by tenants, lawsuits based on quiet enjoyment are more common than in residential leases.

*Robert Green of GLE contributed an article in GLE “What Does Quiet Enjoyment Mean for Property Managers?”

There are no warranties, express or implied, including fitness for a particular purpose, made with respect to this communication. Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should obtain the advice of an attorney well versed in these matters.

Go-Dark clauses

What is a “Go-Dark” clause in a commercial lease?  Most leases require you to continuously operate your business while you are leasing space in the property and if you violate your center's hours of operation or close completely, you could end up in default. A go-dark clause gives you the opportunity to shut down your operation without sanction from the landlord as long as you continue paying your rent.  Landlords frequently oppose granting go-dark clauses because they can lead to rolling vacancies as tenants move out to avoid being in a center with gradually shrinking traffic. One of the lease terms that a landlord may offer you instead is a go-dim clause that requires you to modify the way you operate or your operation hours to reduce your costs.  Another option that your lease may contain is a recapture clause. Recapture lease terms let your landlord take your space back and cancel your lease obligations if you go dark. While this can be valuable if you want to get out of the space, it also means that going dark could make you lose your space once and for all if the landlord recaptures it.

We are here to help you and your clients!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

The Property Management Decision Matrix

The backbone of any commercial property is strong property management. If you have recently purchased a commercial building or have a client that owns a building, there comes a time that you must truly consider hiring professional property management. What many owners don’t realize is that the right management company will, in many cases, save the property more money than the management fees being paid.  There are key factors to look for when considering hiring a property management company. Many important factors to consider are:

Experience of the Firms’ Owner(s).  Make sure you know the background and history of any firm you are considering.

Experience of the Property Managers. Make sure the property managers have the proper education, training and background and ask to meet the individual managers.

Maintenance. Major service calls need to be addressed immediately for the integrity of the building. Minor items should be handled as quickly as possible since these sometimes “annoying” items will slowly build animosity from the tenant toward management and ownership.

Tenant Relations Procedures. Experienced firms have tenant relations procedures in place, such as after- hours contact systems and emergency procedures.

Tenant Retention. The management firm should have an established plan to maintain relations and efforts made to retain tenants now and upon their lease expiration.

Financial Reporting. The management firm should provide monthly financial reports and a budget for the building. 

Management Software. There are a few very strong property management software programs.  These are the leading programs for a reason. The right software will integrate everything from accounting to tenant information and maintenance request tracking.

We are here to help! Contact us for an asset management plan.

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing. 

AS IS OR???

In a commercial lease, when it states a tenant will accept the premises “as is”, does it really mean that the tenant accepts the premises with ALL faults?  Even though that may be the intention of the parties, there may be laws that preclude a landlord from completely passing the buck on certain issues, such as environmental cleanup and hazardous waste.  In addition, the law sometimes requires mandatory disclosure of defective conditions or other problems with the premises or property.

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

SNOW REMOVAL - HOW TO CHOOSE A CONTRACTOR.

The biggest mistake you can make when it comes to snow removal is choosing the wrong company.  You might seek out numerous bids but do you know what sets the pros apart from the amateurs?  The best snow removal contractors plan well in advance of the season’s first snow. They visit your property and perform pre-season inspections.  These inspections identify potential hazards or problem areas.  For example, some areas might require plowing and others deicing.  Having this information before rendering services allows for the most efficient snow removal.

 When choosing a full-service snow removal company, consider the following five things:

 *Does the company use sustainable snow removal practices?

*Are the chemicals used safe for concrete, pavement, and other services?

*What other properties in the area does the company service?

*What equipment does the snow removal service use?

*What services does the bid include?

 Hiring a commercial snow removal service is the best way to protect customers, tenants and employees.  It’s also a great way to avoid slip-and-fall lawsuits.  Never let snow or ice accumulate on your property for long. Work with a trusted, local snow removal contractor for safety and peace of mind.

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

DAMAGE & DESTRUCTION

The Damage and Destruction provision in a lease specifies what will happen if the leased premises or the building housing the leased premises is damaged or destroyed.  It typically provides that the landlord may elect, in its sole discretion, to continue the lease or to terminate it.  In the case of continuation, it usually provides for an abatement of rent (reduction) in the same proportion that tenant's use of the leased premises is impaired.  The tenant must make sure that the abatement of rent language is fair.  Some leases base it on the amount of square footage of the leased premises that is damaged or destroyed.  This is unfair since sometimes the entire leased premises may not be useable even when the damage is to a small area.  For example, if the entry is blocked, it does not matter if the rest of the premises is not damaged; no one can enter.  In this case it would be landlord's responsibility to repair damage, make sure the tenant retains the right to complete improvements following the landlord's repair before rent obligation resumes. 

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

COMMERCIAL LEASE RENEWAL

It can take upwards of two years to make up for the income lost when a tenant vacates instead of renewing the lease.  The chance of lease renewal by a satisfied tenant is triple the chance of lease renewal by a dissatisfied tenant.  To ensure that your commercial real estate tenants are satisfied with their leased space in your property, it is important to develop a strategic plan for tenant management.  The plan should include an assessment of, and a plan to meet, their business needs.  You should develop a regular communications program with a single point of contact as well as an assessment program to measure the level of tenant satisfaction.

 We are here to help you and your clients with all aspects of commercial property management. Please contact us for further assistance!

 Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

What is a “Go-Dark” clause?

What is a “Go-Dark” clause in a commercial lease?  Most leases require you to continuously operate your business while you are leasing space in the property and if you violate your center's hours of operation or close down completely, you could end up in default. A go-dark clause gives you the opportunity to shut down your operation without sanction from the landlord as long as you continue paying your rent.  Landlords frequently oppose granting go-dark clauses because they can lead to rolling vacancies as tenants move out to avoid being in a center with gradually shrinking traffic. One of the lease terms that a landlord may offer you instead is a go-dim clause that requires you to modify the way you operate or your operation hours to reduce your costs.  Another option that your lease may contain is a recapture clause. Recapture lease terms let your landlord take your space back and cancel your lease obligations if you go dark. While this can be valuable if you want to get out of the space, it also means that going dark could make you lose your space once and for all if the landlord recaptures it.

We are here to help you and your clients!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

CORPORATE TENANTS IN COMMERCIAL SPACE

One of the mistakes corporate tenants should avoid making is not hiring broker representation.  Signing a commercial lease is an important business decision and one of the greatest financial commitments that business owners make.  Don’t forgo hiring a commercial real estate broker. Even if you have extensive transaction experience or an internal real estate team, the decision to hire a tenant representation broker can do wonders for your business. Brokers have the market knowledge and skillset to find a property that meets your specific requirement and negotiate a favorable lease on your behalf. Many tenants worry about the cost of commissions; oftentimes, your landlord will cover that fee. You may also see a significant return on investment in the form of lower rent rates, higher tenant improvement dollars and other landlord concessions.

We are here to help you and your clients with all aspects of the commercial property management and leasing market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

WHIRLWIND 20 MONTHS

A recent article in the National Law Review comments about the whirlwind 20 months for commercial real estate (CRE), which was hit particularly hard by COVID-19.  According to a recent report “The pandemic created the worst recession the office sector has ever faced — leaving property owners to seek out new ways to entice tenants, navigate changing lease structures, and manage any number of other COVID-related issues. Moreover, COVID-19 has caused many observers to challenge and question the fundamental way we work and, more importantly, where we work.  On the flip side, despite the pandemic’s persistence, other areas in CRE have proven remarkably resilient.  As the economy continues to recover, PwC data shows that an enormous amount of investment is surging into real estate.”

The challenges of CRE will surely continue into 2022, presenting new challenges, opportunities and uncertainties.  Many tenants want flexible and short-term lease structures.  However, one study shows that more than 75 percent of new leases signed in the first half of 2021 were for terms greater than four years, and 25 percent were for terms of 10+ years — percentages consistent with pre-pandemic levels.  The article states “The full impact of COVID-driven changes in working and space use may not be realized until larger, existing leases come up for renewal or until there is clarity around the extent to which remote working will effect a permanent change in office space usage and, ultimately, demand.”

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing

AS-IS or NONE OF THE ABOVE

In a commercial lease, does “as is” really mean that the tenant takes the premises “as is”?  Even though that may be the intention of the parties, there may be laws that preclude a landlord from completely passing the buck on certain issues, such as environmental cleanup and hazardous waste.  Also, the law sometimes requires mandatory disclosure of defective conditions or other problems with the premises or property.

 We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

 Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing

COVID-19 - SOMETHING POSITIVE?????

Believe it or not, there have been some positive effects of COVID 19 as a result of our mandatory slow down.  We have gotten back some much needed family time.  It’s amazing what can happen when families are together more and some of their primary entertainment sources are taken out of the equation. Many families are cooking together, playing board games, having discussions, spending more quality time together, and bonding in ways they haven’t in a long time.  Nature has returned to balance with fewer cars on the road and less emissions, many large cities around the world saw clear blue skies. Wildlife populations also returned to areas in which they hadn’t been seen in decades. We’ve realized how valuable human connection is as sometimes we get so wrapped up in our technology that we forget how great it is to have face-to-face contact with other people.  Masks have increased the value of smiles and hugs, two of the things that we miss the most. 

None of these things can replace the lives lost due to COVID-19, but for many of us, this experience has brought us some necessary connection with one another and reminded us just how special our world and our loved ones are.

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

COVID STORY OF HOPE

Rosa has been a maid at a New York high rise complex for over 20 years.  When COVID hit, Rosa was furloughed and soon found herself sleeping on the couch of a relative.  Soon after, Rosa was called by the property manager to meet at one of the vacant units of the high rise where Rosa formerly worked for 20 years.  Rosa assumed, and was hopeful, they might need her to clean the unit.  Much to Rosa’s surprise, the property manager handed her the keys to the unit and informed Rosa that a large group of the buildings residents pooled their money to pay for the rental of the unit for 2 years for Rosa to live in.  The residents let Rosa know that she is a ray of sunshine and enjoy her presence.  Based on a true story.

Every cloud has a silver lining.  There is something good to be found in every bad situation.  What’s your silver lining in this COVID world?  I would love to hear your story.

COMMERCIAL PROPERTY MANAGERS

Adaptability is at the heart of what it means to be a property manager.  This year, in the face of a pandemic and recession, property managers have rapidly shifted gears to solve problems they’ve never faced before. They’ve adapted to regulatory changes like eviction moratoria in residential, implemented new safety protocols in their properties, and started operating remotely…all in response to conditions that changed overnight.  In this unexpected environment, property managers have become more valuable than ever.  Managing a property has become more complex than ever and the value of property managers’ expertise in property operations, local market conditions, and regulatory changes has increased tremendously.  Commercial property managers have spent the year working closely with tenants to modify lease agreements and create payment plans.  COVID-19 has made property managers’ value more evident and in-demand than ever. The crisis management that has long been a primary aspect of property managers’ work has prepared them to adapt in the face of the novel challenges that have emerged in 2020.

We are here to help you and your clients with all aspects of the commercial rental and property management market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

COVID-19 AND COMMERCIAL PROPERTY MANAGEMENT

In the world of COVID-19, a lot has changed for landlords and property managers. While economists attempt to predict the impact of COVID-19 on commercial real estate, property managers are on the front lines, actively helping owners and tenants cope with the pandemic. For property managers, a highly transmissible virus poses a challenge in a job that thrives on human interaction and connectedness. Frequent communication is more critical than ever, staying in touch with landlords, tenants and vendors keeping everyone on the same page. This will create some peace of mind and make whatever problems come up seem more solvable. Containment measures for the virus have forced us to limit physical interaction but that doesn’t mean communications will be less effective. Automated property management software plays a key role as it allows you to streamline your communications including online payment options and statements.

We are here to help you and your clients with all aspects of the commercial property management and leasing market. Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

COVID-19” & HVAC SYSTEMS

“Can a building’s heating, ventilation and air conditioning (HVAC) air filters protect me from getting COVID-19”

Filtration in a building HVAC system can be a part of an overall risk mitigation approach but is not generally regarded as a solution by itself.  There is no direct scientific evidence of benefit, but some reduced exposure can reasonably be inferred based on the ability of some filters to remove particles that contain a SARS-CoV-2 virus.  In order for filters to have any impact on infectious disease transmission, transmission has to occur through the airborne route, filters have to be properly installed and maintained in appropriate systems to treat recirculated air, and filters have to be appropriately designed for the building in which they are used.  More importantly, in most buildings and in most situations, filters may be considerably less effective than other infection control measures including social distancing, isolation of known cases, and hand-washing.

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

Force Majeure

How do force majeure (unforeseeable circumstances that prevent someone from fulfilling a contract) provisions in a commercial lease impact the contractual obligations of commercial tenants and landlords?  Force majeure provision is common in most commercial leases and excuse non-performance of certain obligations under a lease if an unavoidable or unforeseen act prevents the tenant, or the landlord, from performing.  Examples of events covered by force majeure provisions include natural disasters, labor strikes, governmental actions, wars, and a catchall of unforeseeable circumstances beyond the control of the party that is impacted.  If your lease contains a force majeure clause, it is important to carefully review its language to determine which events are covered.  Pay particular attention whether "epidemics" or "pandemics" are considered force majeure events.

If COVID-19 is considered a force majeure event under your lease, some contractual obligations under the lease may be excused: for instance, if a tenant is forced to close its business due to a governmental decree, such tenant will not be in default under a provision that requires the continuous operation of the tenant's business in the premises. However, most force majeure provisions do not excuse or postpone monetary obligations and, in fact, many affirmatively state that monetary obligations are not excused (i.e. a tenant's obligation to pay rent, a landlord's obligation to provide a tenant improvement allowance, etc.).

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.

COMMERCIAL TENANT RIGHTS

In general, the rights of commercial tenants are inscribed in the lease.  Courts tend to decide cases based on adherence to lease terms even if the terms seem to violate aspects of basic fairness.  Residential tenants have far more protections than commercial tenants do under the law.  To facilitate a positive landlord-tenant relationship, spell out lease terms clearly.  For example, regarding entry to the property by the landlord, define what constitutes “adequate notice” clearly in your lease.  This is especially important for tenants whose businesses require some level of confidentiality.  Make sure that you ensure more than adequate notice in cases of invasive maintenance that may affect your tenant’s business operation.

We are here to help you and your clients with all aspects of commercial property management.  Please contact us for further assistance!

Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.