Monday, August 15, 2011

Welcome to Managing Commercial Property

Welcome to Managing Commercial Property, where I blog on topics relating to the management of different commercial properties. My first post concerns the usage clause in a retail lease.

I was going through some old tenant files in the storeroom where I work, and came across one from 1953. It was for a women’s clothing store in the (former) Statler Hotel lobby. Reading over the correspondence, it struck me how little has changed in the job of managing a property and enforcing the lease. The tenant had a usage clause, restricting them to selling certain items- and naturally they ignored it. Various letters went back and forth, and it appeared in the end that they pulled the forbidden items. Fast forward to today, where I’ve encountered the same problem over and over, typically with smaller, “mom and pop” type establishments. The only way to enforce the usage clause is a) checking their store periodically and b) letting them know immediately if something’s wrong.
(P.S. In another file from the same era, there was a notation that the tenant wanted too many electrical outlets- I believe the number was three. Management may not have changed, but build outs certainly have!)

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