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Force Majeure Clauses in Commercial Real Estate Contracts

You may be hearing the phrase “force majeure” being thrown around quite a bit in response to the upheaval caused by the coronavirus. But what does this archaic phrase mean for you and your real estate contracts? In short, a force majeure clause operates to excuse performance obligations in an agreement or to extend time of performance when an unforeseeable event, or one that is "beyond the contractor's control," causes one or more parties to be unable to meet their contractual obligations. Given that the coronavirus may well qualify as a triggering event for purposes of a force majeure clause in one of your contracts, we offer the following information, which is geared toward commercial real estate. (Read More)

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5 Key Considerations When Starting Your Cannabusiness

The estimate is staggering: $30,000,000,000. That’s a lot of zeros and a forecast of annual legal cannabis sales by 2025—this as more and more states legalize marijuana for medical or recreational use. No question, the cannabis business is booming, which is something of a given. Less obvious is what you, as a budding cannabusiness entrepreneur, should consider in making cannabis your business. Toward that end, there’s a broad range of issues to think about. (Read More)

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Commercial Leasing in the Cannabis Age

Cannabis is on fire. And as more and more jurisdictions move to legalize marijuana for medical and/or recreational use, would-be players in the cannabis space are lining up to sign leases on commercial property from which they hope to operate. Which begs the question: do these cannabis-related leases require any unique terms given the nature of the business? The answer is a definitive yes.

A critical concern for any storefront retailer, including those operating a cannabis business, is the lease agreement. To be sure, given the unique circumstances presented in the pot biz—namely, the interplay of federal and state laws, banking and insurance industry aversion, and the relative unknowns presented by a new and burgeoning industry—leases for dispensaries and associated retail operations require special considerations. Here’s an overview. (Read More)

Lease Negotiation with Sophisticated Landlords

Imran Hayat presented on “Lease Negotiation with Sophisticated Landlords” at the recent Michelman & Robinson Food & Beverage Hot Topics seminar that took place on October 13, 2014, at a private club in Santa Monica. Hosted by M&R's Hospitality Industry Affinity Group, this unique event provided two panels of discussion on Growth Planning for Restaurant Businesses, followed by a sunset cocktail reception overlooking the ocean. In this video segment, Imran discusses the importance of understanding and negotiating the use clause in commercial lease agreements.

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How to Choose a Location for Your Restaurant

Despite being a key to its success, a restaurant’s location is a frequently seen as ancillary in the planning process. Long hours of preparation, trendy menu items and great service can all be futile if the location isn't right. A restaurant’s location will influence a myriad of decisions, including the menu. The following are best practices to consider when choosing a location before opening your new restaurant. (Read more)

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Late-Fee Confusion In Calif. Residential Leases

As anyone who has ever surfed the Internet knows, there is a great deal of conflicting information and advice to be found on just about every topic under the sun. One such issue, which has been the subject of increasing interest and debate in online legal forums over the last several years, is whether or not the standard provision for late fees in a residential lease is enforceable in California. (Read More)

Dmitriy Shironosov © 123RF.com

Subordination Agreement Risks: Although a Standard Document, Due Diligence is Required

You have finally found buyers for that vacant lot. Given market conditions and the lending climate, you are asked to “carry back” (e.g., seller finance) a significant portion of the purchase price. Due to the buyers’ need for a construction loan, you are asked to sign a subordination agreement, automatically putting your loan in second-lien position. If you refuse to sign the paperwork, the buyers will back out because they need the construction loan for development; the construction loan will be first-lien. (Read More)