CLE
Cliff Ennico
Cliff Ennico Law Office of Clifford R. Ennico
Location, Location, Location Representing Tenants in Commercial Lease Negotiations (Part 2)
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Location, Location, Location: Representing Tenants in Commercial Lease Negotiations (Part 2)

When you represent a “brick and mortar” business, you will sooner or later be called upon to review and negotiate the client’s lease of commercial space in a shopping center or office building. While your client generally doesn’t have a lot of negotiating leverage, there are many things you can negotiate that will prevent your client from being treated unfairly. In this fast-paced, entertaining presentation, a leading business lawyer who has represented over 15,000 clients in his 45-year career will walk through a typical commercial lease clause by clause and provide guidance on drafting and negotiating key provisions.

Topics to be covered in Part 2 of this course include:

  • The most commonly negotiated provisions in shopping center, office, and “office tower” leases
  • Noncompete provisions in shopping center leases
  • Early termination clauses
  • Ways to limit your client’s personal guaranty obligations, including “good guy/good person” guaranty language
  • “Sneaky” provisions landlords sometimes include in their lease forms that you should always resist whenever possible
Agenda:
  • Negotiating the Commercial Lease, Clause by Clause (Part 2)
    • Noncompete provisions in shopping center leases
    • Compliance with the landlord’s rules and regulations
    • Landlord and tenant improvements
    • Your client’s rights if the premises are destroyed or condemned
    • Insurance, indemnification, and environmental requirements
    • Default provisions and landlord remedies
    • Signage, parking, and tenant advertising
    • Rights of third parties (subordination and attornment clauses)
    • Protecting your client’s quiet enjoyment of the premises from third parties, especially mortgagees
    • Estoppel certificates
    • Your client’s right to assign and sublease the premises
    • How to get your client out of the lease before its scheduled expiration
    • “Sneaky” provisions landlords sometimes include in their lease forms that you should resist whenever possible

  • Other Lease Documents
    • Personal guaranties and how to limit them
    • Documents your client’s franchisor will require from the landlord

  • Summary of Important Points
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Duration of this webinar: 60 minutes
Originally broadcast: September 4, 2025 11:00 AM PT
Webinar Highlights

This webinar is divided into section summaries, which you can scan for key points and then dive into the sections that interest you the most.

Introduction
Cliff Ennico, an expert in legal and tax issues for entrepreneurs, is the speaker. The focus is on representing tenants in commercial lease negotiations, starting with addressing non-compete provisions in shopping center leases. Cliff advises negotiating non-compete clauses with landlords to prevent leasing to competitors and reviewing existing non-competes to avoid conflicts. He suggests alternatives like rent reduction clauses if landlords refuse non-compete agreements.
Improvement Provisions
Cliff discusses the importance of obtaining and reviewing the landlord's rules and regulations to ensure they do not contradict the lease. Cliff advises negotiating clauses related to improvements, ensuring clarity on responsibilities for repairs and replacements. He emphasizes the need for clauses that protect tenants' quiet enjoyment during landlord improvements, especially in shopping centers. Cliff highlights the importance of reasonable notice for disruptions and clarity on tenant responsibilities for HVAC systems.
Tenant Responsibilities and Environmental Clauses
Cliff explains the significance of fixture clauses, addressing when tenants can install or remove fixtures. He advises on negotiating landlord approval for contractors and ensuring such approval is not unreasonably withheld. Cliff discusses asbestos remediation responsibilities in older buildings and the importance of clear environmental clauses. He emphasizes the landlord's responsibility to ensure premises comply with environmental laws at lease commencement. Cliff highlights specific environmental concerns for certain tenants, like hair salons and medical offices.
Indemnification, Insurance, and Casualty Clauses
Cliff advises limiting indemnification clauses to the tenant's gross negligence or willful misconduct. He emphasizes the importance of tenant liability insurance and advises reviewing policy limits with clients. Cliff discusses casualty and condemnation clauses, distinguishing between partial and total casualties. He advises ensuring rent abatement in cases of total casualty and the tenant's right to terminate if repairs are delayed. Cliff highlights the importance of time limits for landlord decisions on repairs or lease termination.
Default and Termination Clauses
Cliff discusses default provisions, advising requiring notice before declaring default for late payment and allowing time for curing defaults. He emphasizes the importance of compliance with state statutes on landlord remedies upon default. Cliff advises including language requiring additional notice before eviction proceedings. He warns against clauses waiving the landlord's obligation to mitigate damages and advises ensuring rent stops accruing after lease termination.
Signage, Subordination, and Related Clauses
Cliff discusses the importance of negotiating signage, parking, and advertising clauses in shopping center leases. He advises involving franchisors in signage decisions for franchise tenants. Cliff highlights the significance of subordination and attornment clauses, ensuring tenant protection in case of landlord foreclosure. He advises obtaining non-disturbance agreements from lenders to protect tenants' quiet enjoyment. Cliff discusses estoppel certificates, advising on response time and ensuring tenants' awareness of obligations.
Miscellaneous Lease Considerations
Cliff advises on assignment and subleasing clauses, emphasizing the need for landlord consent and reasonable approval conditions. He addresses early termination clauses, discussing notice, condition of premises, and early termination fees. Cliff highlights the importance of good person guarantees to limit personal liability. He advises on holdover provisions, ensuring penalty rates apply only when renewal negotiations fail.

Please note this AI-generated summary provides a general overview of the webinar but may not capture all details, nuances, or the exact words of the speaker. For complete accuracy, please refer to the original webinar recording.

Speaker
Cliff Ennico
Cliff Ennico Attorney
Law Office of Clifford R. Ennico

CLIFFORD R. ENNICO (www.cliffennico.com) is widely considered to be one of America's leading experts on the legal and tax problems facing entrepreneurs and privately-owned businesses. Read More ›

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California CLE

Status: Approved

Credits: 1.00 General

Earn Credit Until: June 30, 2026

New Jersey CLE

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Credits: 1.20 General

Earn Credit Until: September 16, 2026

North Carolina CLE

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Credits: 1.00 General

Earn Credit Until: February 28, 2026

South Carolina CLE

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Credits: 1.00 General

Difficulty: All Levels

Earn Credit Until: December 31, 2025

Texas CLE

Status: Approved

Credits: 1.00 General

Earn Credit Until: September 30, 2026


This presentation is approved for one hour of General CLE credit in California, North Carolina, and South Carolina (all levels). This program has been approved by the Board on Continuing Legal Education of the Supreme Court of New Jersey for 1.20 hours of total CLE credit. This course has been approved for Minimum Continuing Legal Education credit by the State Bar of Texas Committee on MCLE in the amount of 1.00 credit hours.

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