Current Issues in Lease Renewal Negotiations - Captive Tenant and Market-Based Renewal Transactions - Webinar (Recorded)

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Webinar
90 Minutes
May 2023
Lorman Business Center, Inc.
ID: 5767907

Stay compliant and understand the key issues to consider in lease renewals.

This presentation will focus on the changing environment in lease renewals and lease amendments, both in the context of an option exercise and a negotiated lease renewal. Given the paradigm shift in vacancy rates and demand for space, tenants need to plan well in advance and avoid falling into the captive tenant category. The presentation will focus on the process of approaching lease renewal negotiations for each landlord and tenant, the due diligence needed to identify issues to be discussed, the nuances of the definition of fair market rent, and developments in compliance with laws, credit support, security deposits, energy efficiency and conservation, force majeure, and the use of improvement allowances that are impacting lease renewal negotiations.

Learning Objectives

You will be able to discuss the nuances of the definition of fair market rent.
You will be able to explain the use of improvement allowances that are impacting lease renewal negotiations.
You will be able to recognize the due diligence needed to identify issues.
You will be able to review the process of approaching lease renewal negotiations for each landlord and tenant.

Agenda

Why Focus on Lease Renewals

Gives Parties the Ability to Address Issues Not Addressed in the Lease
Gives Parties the Ability to Address New Laws and Allocate Responsibility for Compliance
Opportunity for Remeasurement of RSF and to Reconsider Credit Support Matters
Opportunity for Tenant to Obtain Concessions (Very Relevant in Today’s Market)
Opportunity to Adjust Rent and Extend Lease Term (a Blend and Extend)
Opportunity to Obtain an Estoppel

When to Start Process

Most Brokers Suggest Starting the Process 12 Months Prior to Date the Lease Term Expires or the Last Day Before a Tenant’s Right to Exercise Any Applicable Option to Extend Is Set to Expire
What Does the Term Captive Tenant Mean and How Does It Relate to the Period in Which to Exercise an Option to Extend and the End of the Lease Term
What Impact Does the Current Uncertainty in the Market Have on Lease Renewals and Modifications, a Tenant’s Leverage, and Timing

The Process Leading Up to a Lease Renewal and Lease Modification

Are Brokers Involved and Who Pays the Broker Commission
Is a Letter of Intent Used? Under What Circumstances?
Make Sure to Check Existing Lease for Base Year, Floor Remeasurement, Calculation of Rent and Other Terms Applicable to an Option to Extend
Determine If There Will Be Tenant Improvements and the Process To Do the Work While Your Company Is in the Leased Premises, Consider Swing Space, Consider Impact on Business Operations
The Stay or Go Discussion
Consider Needs of Existing Subtenants
Determination of Market Rent in Option Exercise Scenario (Deep Dive Is Focus of a Different Program)

Role of Landlord’s Property Management and Listing Broker Teams

What to Include in a Lease Renewal /Lease Modification Agreement

The Basics: Rent, Term, Base Year, and Security Deposit - Do You Still Have the Same Landlord and Tenant Parties?
Is This an Exercise of an Option or a Lease Modification Agreement
Read the Lease
Will a Tenant Work Letter Be Required - How Extensive Will Tenant Improvements Be?
Revisit Assignment Sand Subletting
Obtain Reaffirmation of Guaranty
Consider SNDA Even If Not Obtained in the Original Lease
Revisit the Boilerplate Provisions
Consider Time Pressure and Deadlines
Consider Market Conditions and Impact of Hybrid Work Schedule

Summary and Concluding Remarks

Speakers

Manuel Fishman, Esq.,
Buchalter Nemer
- Shareholder with Buchalter Nemer
- Focuses practice on representing real estate developers and owners in the acquisition, sale and financing of commercial properties
- Active leasing practice representing owners of several major office buildings in San Francisco, including the Transamerica Pyramid, as well as tenants in lease and sublease transactions
- Expertise includes letters of intent, tenant improvement work agreements, security deposits/letters of credit, signage rights, expansion and contraction rights, permitted transfers, operating expense audits, and lender and master landlord recognition agreements and extensive experience in the area of ground leasing and retail leasing
- Leading attorney in the area of landline and wireless communications and Internet-based services in commercial properties and rooftop installations
- 2020 Best Lawyer in America in real estate law, an honor he has received since 2007; 2014 Top Rated Lawyer by American Lawyer Media, 2012-2018; one of Bay Area Magazine’s Top Lawyers in the Bay Area; and recipient of the 2019 Raymond C. Nann Distinguished Service Award
- Frequent lecturer on office and shopping center leasing matters and writes frequently for industry newsletters
- J.D. degree, magna cum laude, Santa Clara University School of Law; B.A. degree, State University of New York at Purchase
- Can be contacted at 415-227-3504 or mfishman@buchalter.com

Who Should Attend

This live webinar is designed for attorneys, presidents, vice presidents, property managers, real estate professionals, developers, landlords, building owners and managers, and accountants.

Stay compliant and understand the key issues to consider in lease renewals.

Learning Objectives

Agenda

Speakers

Who Should Attend

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