Can I Have Your Space Back? – Revisited: Pay me


Last week’s posting about a landlord’s negotiated right to “recapture” space generated comments reflecting somewhat divergent views, both here and on some social networking sites. That’s good. That was the idea. So, with last week’s posting freshly in mind, we’ll plunge in.

Other than for the rent coming in, empty space, especially at a retail project is an anathema to a landlord. If nothing else, it says: “failure.” Of course, there is nothing to stop either the landlord or the tenant from going to the other and working out a deal: “I’d like your space back; would you like our space back?” A discussion-enabling lease clause is not a prerequisite to either party picking up the phone. We think a lot of us have forgotten this approach. [Read more…]


Can I Have Your Space Back If You’re Not Using It? Please?


Retail landlords have a legitimate concern when it comes to whether a tenant space is actively in use; industrial and office landlords, less so. If it isn’t obvious why to readers, here is a short list of some key concerns:

• Vacant space makes a project less desirable to potential tenants.

• Vacant space scares potential lenders.

• Vacant space invites crime.

• Vacant space incurs higher insurance rates.

• Vacant space depresses sales for other tenants at a retail project.

• When a Tenant vacates space, it can be an early indication of pending financial problems.

[Read more…]