Are The Demised Premises Really Defined The Way You Meant Them To Be?


It doesn’t matter what we call the space, “Premises,” “Demised Premises,” “Leased Space” or whatever, but what matters is how we define it AND THEN what we do with it. And, when it comes to defining and then using what Ruminations will call the “Leased Space,” our industry doesn’t always do a very good job.

Next week we’ll drag out a 2012 court decision raising some questions about what constituted a particular shopping center, but today just we’ll Ruminate about what should be a simpler question.

One thing that has always puzzled us is what could have been intended when a lease says that the Leased Space means “Store No. 7, as shown on Exhibit A, together with all appurtenances serving Store No. 7.” Then, the lease requires that the tenant maintain the Leased Space.

Now, let’s understand what is meant by an appurtenance. As we see it, it is a pretty fluid term because it is context-sensitive. As applied to real property, it is something subservient to the main property, in our case, “Store No. 7,” but something that attaches to it. What kind of something? Well it could be physical such as an accessory building or loading dock. It could be the rooftop HVAC unit. And, it could be the sidewalks leading to the store, especially those parts that only serve the store. And, as to the foregoing list, it could be that none of them are “appurtenant” to Store No. 7. More importantly, appurtenances would include non-physical “attachments” such as the right to use the parking areas, driveways, delivery roads, and the like. [Read more…]