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LEASE AGREEMENT REFERENCE GUIDE 850: PRO-TENANT RETAIL SITE PLAN STRATEGIES $49.95


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Lease Strategies
850

Product Overview

This LARG contains the following items:

The Major Retail Tenant's Site Plan Wish List, Line of Sight, "No Modification" and Use Clauses for the Site Plan, and the Lease Clause Critique: A Pro-Tenant Arsenal of Retail Site Plan Clauses.

Number of Single Spaced Pages: 12

 

Excerpt

The Major Retail Tenant's Site Plan Wish List

 

Sophisticated retail tenants know that the site plan (or plot plan) attached to retail leases is one of the most important parts of the document. What the site plan shows, or does not show, can be a key indication of the landlord's future development plans for the particular retail complex. Many shopping center developers attach site plans which have very little detail concerning the retail complex (see the example on this page, and compare it to the example on page two which contains considerably more detail).

Pictures or Text?

Of course, negotiations concerning the retail site plan only begin with the drawings of the complex attached as an exhibit to the lease. As noted above, retail landlords prefer to put as little detail on site plans as possible, since details that are not shown cannot come back to haunt them in the future. But equally important is the language in the body of the lease which relates to the site plan, or which is contained in separate documents such as an REA (Reciprocal Easement Agreement) or in CC&R's (Conditions, Covenants, and Restrictions) which pertain to the complex. It is not uncommon for retail leases to contain text buried somewhere in the document which completely negates the effect of fairly generous detail on the site plan.

In lease language relating to the site plan and future development rights, landlords generally seek to include broad provisions which:

  • specify that the details shown on the site plan represent only the general layout of the existing or proposed retail complex;
  • indicate that such details are subject to change;
  • indicate that the names of particular tenants shown on the plan do not constitute representations that such tenants will actually be in the center; and
  • give the landlord the right to make future changes to the details shown on the drawings.

(continued)


End of Excerpt