In this latest episode of “The Morales Group Podcast,” we’re joined by special guest Joe Nuñez, an attorney practicing real estate law, estate planning, and civil litigation at Westford Law Group. Joe shared his insight regarding what you, as a consumer or a landlord, need to watch out for when doing a commercial real estate lease in this ever-changing COVID-19 environment. It’s important to know the types of leases available, everything that’s outlined in the tiny print, and best practices. 

 

There are different types of commercial leases out there, and sometimes, tenants sign a specific one thinking that it’s their only option. “That’s nonsense,” Joe said, “It’s a contract, and the contract can be negotiated. It may be the landlord’s base contract, and that’s fine, but that doesn't mean the tenant doesn’t have the right to negotiate some of those terms.” 

 

Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to skip to topics that interest you most: 

 

2:08 — The different kinds of commercial leases available, and lease expectations 

 

7:32 — Joe recounts a client’s nightmare scenario (without disclosing names, of course) 

 

13:11 — Defining the term ‘junior anchor,’ and the importance of knowing your leverage 

 

15:53 — Understanding percentage leases

 

18:36 — Are there certain lease types that better suit certain types of enterprises? 

 

25:16 — Why tenants should try negotiate an exclusive use for their business and build options

 

28:50 — Do you have a force majeure clause? 

 

33:29 — The continuous operation clause 

 

38:09 — Who bears the responsibility for keeping a building operational, and is that negotiable? 

 

46:07 — Recourse versus non-recourse

 

51: 30 — COVID’s impact on commercial real estate and solutions for those struggling 

 

A huge thank you to Joe Nuñez for helping us make sense of commercial leases; hopefully you found this discussion as enlightening as I did. If you have questions about anything mentioned in this blog or have real estate needs I can assist you with, reach out by phone or email. I’m always happy to be of service!