Negotiating Commercial Leases: Avoiding Unnecessary Costs, Risks and Liability in Commercial Leases - Fall 2009

Overview

Recently admitted NY attorneys: This program is accredited for transitional CLE credit

Why You Should Attend

In today’s changed world, your client or company is relying on you now more than ever to make the best deal. The landscape of the commercial real estate market has changed and so have the rules. It is critical that you understand the hidden costs, shifting of risks and predatory practices of the “killer lease forms” and “sharp” practices. Attend this program to get up-to-speed on how to negotiate the best terms in today’s economy.

This faculty of leading practitioners will give you the tools, insights and advice you need to avoid costly errors or unintended risks and put your client in the most advantageous position.

What You Will Learn

• Insights into commercial leasing in difficult and uncertain times
• How to handle fundamental lease theft issues
• The latest with regard to Lease Takeover Agreements in 2010 and Lease Restructuring
• Nuts and bolts of operating expenses
• Best practices for drafting and negotiating green lease terms
• How to plan for the long-term: assignment, subletting and creating flexibility in your lease

plus

• New issues facing landlords and tenants in the current retail environment
• Insurance and commercial leases in a troubled economy
• Ways to avoid losing your lease and your entire investment
• Tips on handling unexpected excess space and real estate
• Strategies for dealing with insolvency issues in commercial leasing
• Ethical considerations for the real estate leasing attorney

Who Should Attend

Attorneys who practice in the commercial real estate leasing field or are being assigned the facilities responsibilities, and other allied professionals, including real estate brokers, appraisers, property managers, facilities directors, fund directors and accountants/auditors.

Special Bonus to all Registrants

All attendees will receive a complimentary copy of PLI's comprehensive Course Handbook. This softcover, bound volume was written to augment the program and to stand alone as a permanent reference. PLI's Course Handbooks represent the definitive thinking of the nation's finest legal minds, and are often the standard reference in the field.

PLI Group Discounts

Groups of 4-14 from the same organization, all registering at the same time, for a PLI program scheduled for presentation at the same site, are entitled to receive a group discount.  For further discount information, please contact membership@pli.edu or call (800) 260-4PLI.

Cancellations

All cancellations received 3 business days prior to the program will be refunded 100%. If you do not cancel within the allotted time period, payment is due in full. You may substitute another individual to attend the program at any time.

Schedule

Please plan to arrive with enough time to register before the conference begins. A networking breakfast will be available upon your arrival.

Day One: 9:00 a.m. - 5:00 p.m.

Morning Session: 9:00 a.m. - 12:30 p.m.

9:00  Leasing Basics and Fundamental Lease Theft Issues

• Current state of the market
• Commercial leasing in difficult and uncertain times
• A discussion of the largest fundamental lease theft issues
• Tips and strategies for successful negotiation in today’s environment
• Lease Takeover Agreements in 2010 and Lease Restructuring
• Interrelationship between commencement date and work letter

Michael E. Meyer

10:00  The Nuts and Bolts of Operating Expenses and Green Leases

A. Operating Expenses

• Hidden repair and compliance responsibilities
• Dealing with capital expenditures
• Traps regarding managing fees
• The correct gross up procedure
• Negotiating effective audit rights

B. Green Leases: Considerations for Landlords and Tenants

• Best practices for drafting and negotiating green lease terms
• Tailoring a green lease provision to fit a specific “green” building
• Optimizing the use of BOMA and REALpac green lease forms
• Going green can be win-win - cost saving capital improvement

Richard C. Mallory, B. Alan Whitson

11:15  Networking Break

11:30  Unanticipated Limitations in Long-Term Planning

A. Assignment and Subletting

• An Overview
• Permitted Transactions
• Recapture rights and profit-sharing
• Recognition agreements and consents
• Structural impediments to assignment and sublease rights

B. Creating Flexibility, Evaluating Your Options and Negotiating the Deal

• How to create flexibility in the lease
• Renewal and expansion rights, including rights of first refusal, rights of first offer, and fixed expansion rights 
• Early termination rights and partial kick outs

Bonnie Stone Sellers

12:30  Lunch

Afternoon Session: 1:30 p.m. - 5:00 p.m.

1:30  Retail Leasing in the Current Environment

• Use clauses and tradenames
• Exclusive use rights
• Opening and operating covenants
• Co-tenancy rights and “Kick Out” rights
• Assignment and subletting
• New issues facing landlords and tenants in thecurrent retail environment

Theani C. Louskos, M. Rosie Rees

2:45  Insurance and Commercial Leases in a Troubled Economy

• Effect of the financial crisis on insurance
• Who insures the insurer?
• Coverage of catastrophic risks
• What the landlord needs and what the tenant needs

Jay L. Paxton

3:45  Networking Break

4:00  Ethical Considerations for the Real Estate Leasing Attorney

• Conflicts of interest
• Confidentiality
• Dealing with non-attorneys
• Duties of supervisory and subordinate lawyers

Michael E. Meyer, Patricia A. Wilson

5:00  Adjourn

Day Two: 9:00 a.m. - 1:15 p.m.

9:00  How to Avoid Losing Your Lease and Your Entire Investment

• Examine the “Killer Lease Form”
• Layering of superior interests and “recognition” of lease rights
• Impact of condominium conversion on existing mixed use property
• Operations difficulties for multiple owners
• Common area control
• Changes or over-ruling lease rights
• Purchase and extension options may not work
• Subordination Nondisturbance Recognition Agreement “SNDRA”

Michael E. Meyer

10:00  Complex Real Estate Issues: Arbitration vs. Litigation

• Costs of litigation and discovery as well as absence of cases or judgments
• Establishing minimum qualifications for arbitrators in arbitration provisions
• Use of advocate arbitrators - use of 1 neutral or 3 neutrals
• Arbitration: overview and clause preparation
• Arbitration should not be litigation - pick your experienced and specialized judge

Mark S. Hennigh, Nick Slonek

11:00  Networking Break

11:15  Tips on Handling Unexpected Excess Space and Real Estate 

• With unprecedented dislocations of real estate and facilities - get a handle on your options and expenses 
   - Dynamics in the current market environment and realistic options for managing space
   - Tools required to effectively manage a real estate portfolio
   - Practical options for handling space
   - How using an integrated real estate team saves time and money
   - Project management, the key to any space strategy
   - Conventional space management strategies for short or long-term cost mitigation
   - Alternative workplace strategies – “hoteling” and potential for additional savings

Michael E. Meyer, Bonnie Stone Sellers

12:15  Insolvency Issues in Commercial Leasing – Defaults, Workouts, Restructuring and Bankruptcy

• Workouts and restructuring
   - Protecting the landlord during negotiations
   - Structuring the workout
   - Bankruptcy considerations
• Bankruptcy 101 for the leasing lawyer

Karol K. Denniston

1:15  Adjourn

Faculty

Chairperson(s)

Michael E. Meyer, DLA Piper LLP (US)

Speaker(s)

Karol K. Denniston, DLA Piper LLP (US)
Mark S. Hennigh, Greene Radovsky Maloney Share & Hennigh LLP
Theani C. Louskos, Bartko, Zankel, Tarrant & Miller, P.C.
Richard C. Mallory, Allen Matkins Leck Gamble Mallory & Natsis LLP
Jay L. Paxton, Ellman, Burke, Hoffman & Johnson, P.C.
M. Rosie Rees, Pircher, Nichols & Meeks
Bonnie Stone Sellers, Chief Executive Officer, Crossroads Property Strategies LLC
Nick Slonek, Senior Vice President, Cornish & Carey
B. Alan Whitson, President, Corporate Realty, Design & Management Institute
Patricia A. Wilson, Professor of Law, Baylor Law School

Program Attorney(s)

Meghan C. Forgione, Practising Law Institute

CLE Credit

Travel Information

Due to high demand we recommend reserving hotel rooms as early as possible.