MISCELLANEOUS CLAUSES - Understanding Commercial Leases - Part 17

This is Part 17 of a multi-part series on Understanding Commercial Leases.

MISCELLANEOUS CLAUSES

CONTINUOUS USE / GOING DARK

• These clauses require Tenant to continue to operate their business or be in default of their lease.
• Large tenants are sometimes able to negotiate the right to “go dark”, meaning they can close up their business at that location, as long as they continue to pay rent.

LIEN WAIVERS

• Tenants who are going to obtain financing from third parties (such as banks) often are required by lender to have their Landlord sign a lien waiver, wherein the Landlord gives up any rights it might have to take the Tenant’s property in the case of Tenant default.
• Tenants who know they are going to need a lien waiver should negotiate for it BEFORE signing lease.

SIGNAGE

• Landlord and Tenant negotiate what type of signage the Tenant will be allowed to place on the property and who pays the cost of said signage.
• Sometimes Landlord will charge a monthly fee for Tenant's right to place signage on community signage, such as monument signs that list multiple tenants of the property.
• Landlord usually wants to restrict undesirable signage and make sure all signage meets a “common” criteria used on the property, for aesthetic purposes.

TRASH DISPOSAL, UTILITIES, ETC.

• These clauses outline who pays for what expense, location of facilities, etc.

ESTOPPELS

• These are certificates used by Lenders and Purchasers that are signed by the Tenant.
• They usually outline the terms of the lease and ask the Tenant to list any problems under the lease.