SB 939 provides certain Covid-impacted tenants with the right to terminate their leases if they experience 40% monthly revenue declines (for details on the bill, see California Proposes Lease Termination Right For Covid-Impacted Tenants). Below is an update on the current status of SB 939. SB 939 Approved By Judiciary Committee By 5-1 Vote: Last [...]
Under a proposed California law, certain tenants that experience declines in revenue as a result of Covid-19 can terminate their lease if their landlords do not agree to a rent reduction. This Senate Bill 939 (SB 939) has been introduced in the California Senate, but has not been enacted. Does this termination right in SB [...]
Some tenants are asserting defenses to the obligation to pay rent, particularly where their businesses are closed entirely because of the Covid-19 pandemic. However, if a tenant does not pay rent, it may lose the ability to exercise an option to extend, it may lose future rent abatement, or there could be other repercussions. Under [...]
Many businesses did not pay rent or paid partial rent in April 2020, because of the COVID-19 pandemic. Under certain circumstances, a Lessee that is not complying with the AIR CRE Leases can lose the right to exercise its Option To Extend the Lease term. If a Lessee failed to pay rent for April 2020, [...]
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 [...]
Could a quick e-mail from a Buyer’s broker to a Seller’s broker stating “Buyer finds the environmental report unacceptable” accidentally terminate a purchase and sale agreement? Could an e-mail from a tenant's broker to a landlord's broker stating "tenant is going to exercise the option” be an unintentional exercise of an AIR option to extend [...]
The AIR Option To Extend Addendum is frequently an afterthought when completing AIR lease documents. This Addendum is a well-drafted form and relatively straight-forward. Nevertheless, there are at least two key provisions that every real estate professional should know. 1. Fair Market Rental “Floor” Provision: If it is a fair market value option, the Addendum [...]
