The State of Washington imposes a real estate excise tax (REET) on the sale of real property. For many years, the REET was assessed at a flat rate of 1.28% at the state level, and local governments could also tax…
Read MoreA significant term in most commercial leases is the right or obligation of landlord or tenant to remodel the leased premises during the lease term. When negotiating and drafting such a lease provision, it is important to address: (a) which…
Read MoreThe American Institute of Architects (AIA) has for nearly 130 years produced standardized form contracts for the construction industry. The AIA reviews and updates its form contracts based on industry trends and important decisions, and in 2017 revealed substantive changes…
Read MoreOn December 11, 2017, the Seattle City Council voted 7-0 to enact new regulations for short-term rentals. The new regulations will take effect on January 1, 2019, and will require all operators of short-term rentals (including those offered on sites…
Read MoreThis post follows up on a prior article addressing the myriad issues that can occur when a retail tenant abandons the premises before the expiration of the lease term: When A Retail Tenant Goes Dark – Part One. This is a growing…
Read MoreDespite strong consumer confidence and the lowest unemployment level in a decade, retail defaults this year are expected to surpass those in 2009 when the economy was in the throes of the Great Recession. Sorry, We're Closed, The Economist, May…
Read MoreAs craft breweries often merge retail and industrial leasing concepts, they face a unique set of legal issues when negotiating a commercial lease agreement for their production facility and/or tasting room. License/Permit Contingencies and Permitted Use Provisions are Critical First…
Read MoreDebt Acceleration Generally Commercial and residential loan documents typically give the lender the option of accelerating the debt following an event of default. In other words, if the borrower fails to pay, or if some other event of default occurs,…
Read MoreIn a commercial lease setting, in addition to the monthly rental payment, the tenant is often obligated under the lease agreement to reimburse the landlord for the tenant’s “Pro Rata Share” of certain “Operating Expenses” (sometimes called Common Area Maintenance…
Read MoreA properly structured sublease can be a prudent strategy in a commercial lease transaction. However, if poorly drafted, a sublease can unnecessarily expose all three parties (the landlord, tenant and subtenant) to unforeseen liabilities and risks.
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