Commercial Leases: Negotiating and Drafting Early Termination and Assignment Clauses
Permitted Transfers, Consent, Recapture, and Mitigation Clauses
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Real Property - Transactions
- event Date
Tuesday, June 27, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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This CLE course will provide practical guidance to real estate counsel on early termination clauses in commercial leases, with a focus on best practices in negotiating, drafting, and documenting early termination provisions and liquidated damage clauses and assignments and permitted transfers.
Mr. Hughes focuses his practice on a wide array of transactions related to commercial real estate, including office leasing, acquisitions, dispositions and foreclosures, and land acquisitions. He represents property developers, investors, and office users. Mr. Hughes’ transactional practice involves negotiating office leases for landlords and tenants, representing high net worth individuals, funds, and companies in the sale and purchase of Class A and B properties, and stewarding office and land closings.
Mr. Rivera’s practice focuses on real property and corporate law, representing numerous developers, investment companies, business owners, municipalities, lenders, retailers and management companies throughout the United States and Latin America. Since 1981, he has handled a broad range of matters involving the development and financing of various classes of commercial real estate including retail, office, industrial, multifamily and mixed-use properties. Mr. Rivera’s expertise lies in acquisition and sales, leasing, contract/lease enforcement and evictions, loan transactions, foreclosures and workouts.
Commercial leases are typically long-term agreements that require tenants and landlords to negotiate numerous rights and provisions. The ability to terminate a contract early and mitigate the damages creates challenges on both sides. For a tenant, such options allow for more certainty about future occupancy, bolstering its decision to invest in that location. For a landlord, such options--while not a guarantee of future rents--provide a higher likelihood of continuity of occupancy. Such arrangements can result in high yield and low risk lease agreements for both parties.
Key to structuring such early termination rights is a proper focus on issues, including rent calculations, performance conditions, limitations on assignment, and risk management requirements.
Listen as our authoritative panel of real estate practitioners provides practical guidance and strategic insights on these termination clauses, with a focus on best practices in negotiating, drafting, and documenting commercial lease renewal options and opportunities for early termination.
- Options for early termination
- Rent calculation
- Related provisions
- Assignments of lease
The panel will review these and other related issues:
- How can counsel draft early termination provisions that protect their clients--whether landlord or tenant?
- What are the best practices for drafting options provisions in commercial leases?
- What is the importance of performance conditions, limitations on assignment, and other requirements?
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