Many businesses in California are struggling to pay April 2020 rent as a result of the impact of COVID-19. Under the AIR CRE Leases, is Lessor entitled to late charges and interest if Rent is not paid on time? Short Answer: Yes. A late charge of 10% (or $100, whichever is greater) is due if [...]
In light of COVID-19 closures, many Lessees are requesting rent relief from their Lessors, in the form of deferral or abatement. Lessors are more curious than ever to understand the financial situation of Lessees. Under the AIR CRE Leases, is Lessee required to provide financial statements upon Lessor’s demand? Short Answer: Yes, but only in [...]
Publisher’s Note: We are experiencing difficult times in California with the Coronavirus. I hope all is well with you and your loved ones, and our best wishes in the recovery of any of your businesses that have been impacted. Many California businesses have temporarily closed as a result of COVID-19. Does the closure of a [...]
Publisher’s Note: We are experiencing difficult times in California with the Coronavirus. I hope all is well with you and your loved ones, and our best wishes in the recovery of any of your businesses that have been impacted. California businesses have been suffering and many have closed, either by direct mandate of the government [...]
Southern California recently experienced a magnitude 7.1 earthquake. Well before the recent quake, our clients have been increasingly considering earthquake coverage for their buildings. Under the various AIR Leases, if a Lessor obtains earthquake coverage for its building, can it charge this cost to Lessee? Short answer: Sometimes. In the AIR “Net” leases, it is [...]
Effective March 1, 2017, California businesses with a single-user restroom must identify such restrooms with signage as “all-gender” restrooms. Under the AIR lease, is it Lessee’s responsibility to comply with this new law, and is Lessee responsible for the cost to comply? Yes, according to many Lessors. Lessors are contending that, pursuant to Paragraph 6.3 [...]
The AIR Commercial Real Estate Association has updated its lease forms to account for a new California disability access law effective January 1, 2017. The new law was approved by Governor Jerry Brown on September 16, 2016. As the new year begins and you get ready to close deals, make sure you update your AIR [...]
If the most frustrating event for an owner of commercial property is a tenant not paying rent, the second most frustrating event must be a delay in evicting that tenant. If the lease at issue is an AIR lease, here are three tips to facilitate a quick eviction: 1. Careful Preparation of the 3-day Notice: [...]
If Lessee does not perform an obligation in the AIR Lease, Lessee typically has the right to cure its Default. However, if it fails to cure on time (or if the Default cannot be cured), Lessor may terminate Lessee’s right to possession of the Premises and require Lessee to pay Lessor all of the following [...]
After you sell a property, do you want to ensure that the buyer does not make a claim against you? Part 3 of this series discusses the most effective modifications Sellers make to the AIR purchase agreement to avoid (or limit) post-Closing claims by Buyers. “Cap” on Liability: Many custom purchase agreements will include a [...]
