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It’s time to make a list of things we want to accomplish this year.   Along with exercising more and eating less, for those of us in the commercial real estate industry, now is a good time to review your commercial lease agreement.  Whether you’re a landlord or a tenant, inevitably there will be an item or two in your lease that needs updating, especially if your lease is more than 10 years old. Below are items that I frequently discover missing from or not properly addressed in lease agreements. If you’re a landlord, make sure that your lease includes the […]

A cause of action for “forcible entry and detainer” is not the same as a cause of action for “forcible detainer”.  Many, including lawyers, use the two terms interchangeably, but they are not interchangeable. The former is governed by Texas Property Code Section 24.001 and the latter is governed by Texas Property Code Section 24.002 and they are distinguished based on the illegality or legality of the initial entry. A forcible entry and detainer action is used to remove a person from a property who never had a right to be there. In other words, there was never a landlord-tenant […]

The Texas Property Code expressly provides for a lien in favor of the landlord of a commercial building. (See Chapter 54, Subchapter B, Section 54.021 et seq.) The lien protects a landlord who leases all or part of a building for nonresidential use.  It’s a preference lien on the property of the tenant or subtenant in the building for rent that is due and for rent that is to become due during the current 12-month period succeeding the date at the beginning of the rental agreement or an anniversary of that date.  And the lien attaches to the property of […]

A commercial landlord may remove and store property of a tenant that has abandoned the premises. Section 93.002 of the Texas Property Code addresses this issue. A tenant is presumed to have abandoned the premises if goods, equipment or other property, in an amount substantial enough to indicate a probable intent to abandon the premises, is being or has been removed from the premises and the removal is not within the normal course of the tenant’s business. A landlord may remove and store any property of a tenant that remains on premises that are abandoned. In addition to the landlord’s […]

That the Texas Property Code regulates certain aspects of both residential tenancies and commercial tenancies?  Chapter 91 applies to both types of landlords and tenants, Chapter 92 applies only to residential tenancies and Chapter 93 applies only to commercial tenancies. It is imperative that commercial real estate professionals know what aspects of a commercial lease agreement and tenancy are subject to laws codified under Chapters 91 and 93, what those laws say, and how they differ from residential tenancies.  Commercial rental property is defined broadly as rental property that is not a residential tenancy.  A residential tenancy generally means a […]

Do you own a multi-tenant commercial building that is experiencing reduced profits?  Inflation, rising interest rates and the ability to deduct depreciation on the building for tax purposes nearing the end negatively impact project cash flow.  Most building owners at this juncture will seek to sell the building as a rental property to an investor.  However, there is another option that can benefit your bottom line!  Converting the building into a commercial condominium so that the leasable spaces can be sold off to multiple third-party purchasers as condominium units may be the best decision. Obviously, the first task to complete […]

Commercial real estate attorneys often are asked about ways to help them, as landowners, to be pro-active in limiting their liability from unfortunate occurrences on their property that result in injuries to their guests.  For owners of real estate other than agricultural land, a written waiver could be helpful.  For agricultural landowners (and tenants of agricultural land), the Texas Civil Practice & Remedies Code (TCPRC) provides a layer of protection (See Sec. 75.002 et seq.) A written waiver agreement is an agreement by a guest that documents a promise that the guest will not sue the landowner if the guest […]

When a buyer is considering purchasing a commercial real estate property, they must have complete information that would allow them to make a decision to buy and how much to pay for it. Full disclosure in commercial real estate sales is not just a matter of etiquette. It is the law, and sellers can be held legally responsible for a failure to disclose material facts.

Commercial real estate leases are far more complex than residential leases. There are many more issues and situations to consider that will have a far-reaching effect on both the landlord and the tenant over the course of the lease. When reviewing a commercial lease, remember that you may be able to take advantage of your bargaining power to negotiate changes and certain terms may not be set in stone.

Commercial real estate transactions do not have to be a straight sale or lease of the property. The lessor and tenant have the freedom to agree to different types of deals, so long as the basic requirements of contract law are met. A lease with an option to buy is a hybrid agreement that is part lease and part sale—if the option is exercised. Here is what lessors and tenants need to know about  commercial property leases with purchase option provisions.