Real Estate: Shopping Center Leasing Law
Shopping centers are relatively new institutions – almost all of them were built after World War II. They grew from virtually nothing to their present role as the source of more than one-half of all retail sales in America. This vibrant industry depends on lawyer skills as much as it does on the skills of retailers, architects, and construction contractors. The stream of income derived from lawyer-negotiated leases makes it possible for shopping center landlords to borrow the money they need to buy or develop their projects. To negotiate the clauses that comprise shopping center leases, lawyers need to understand the businesses of shopping center landlords and tenants as well as the needs of the financial institutions that finance the cost of development and construction. Thus, the course will address business, construction, retailing, insurance, and financial issues as well as issues of legal doctrine. Topics include design and construction; defining the lease term, including delivery of possession, co-tenancy clauses, and the commencement date; rent clauses, including minimum rent, real estate tax reimbursement, common area maintenance charges, and percentage rent; condition of the premises clauses, including repairs, compliance, alterations, and surrender; use clauses, including use restrictions, exclusives, and continuous operations, and the effect antitrust law on use and exclusive clauses; radius clauses; transfer-of-interest clauses, including assignment, subletting, and recapture; and default clauses.
Prerequisite: Real Estate Transactions and Finance