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Arnall Golden Gregory LLP

March 28, 2017

A Retail Lawyer’s Reflections Upon Moonlighting as an Uber Driver - How Uber and Other Rideshare Services are Impacting Landlords, Restaurant Tenants, and Restaurant Leases
By: Brian R. Smith

By now, we’ve all realized that rideshare services such as Uber and Lyft have materially impacted a number of industries during their relatively short lifetimes. For this real estate lawyer, 2016 represented the year in which these services worked their way into the restaurant industry and my restaurant leases. Since leases should attempt to contemplate how the world might look and operate 10, 15 or even 20 years into the future, the reality that rideshare services are here to stay should be given consideration in drafting and negotiating a lease for a new restaurant, especially a lease for a high-end restaurant with a significant bar component. More >


Lien on Me: When is a Landlord Liable to a Tenant’s Contractors and Suppliers?

By: C. Knox Withers


Almost every commercial retail lease provides that the tenant shall not allow any materialman’s or mechanic’s liens to be filed against the landlord’s real property. Moreover, in the event that a contractor or supplier does file a lien against the property, the lease will certainly require the tenant to discharge the lien within a short time following notice. And the lease probably absolves the landlord from any liability to material or service providers following the tenant’s failure to pay. More >

Tenant Relocation and Thinking Outside the (Big) Box
By: Jennifer G. Bassett

Retail shopping center growth has hit a big speed bump coming in to the 2017 New Year as increasing vacancy rates persist in many U.S. shopping centers. Big-box retailer Sports Authority announced in 2016 that it would close its 460 stores. Walmart likewise disclosed plans to close 269 stores. Macy’s reported that it would shutter 68 locations by the end of 2017 (and 30 additional stores over the next few years). Kohl’s, Sears and Kmart have similarly announced store closures. The effects of these big-box and anchor tenant closures reverberate throughout their retail centers: foot traffic to the centers decreases; the landlord loses a major source of income; and in some instances, these closures accelerate additional center vacancy by triggering co-tenancy provisions under other tenant leases. When that happens a remaining tenant’s rent will be reduced until a suitable replacement anchor tenant is found, or, even worse, if a replacement is not found after a period of time, the remaining tenant can terminate its lease altogether. How are retail shopping centers trying to re-position themselves in the wake of these closures? And how can the relocation provision of the lease help both landlord and tenant be a part of a more vibrant and profitable center? More >

Lease Assignment Provisions—Why They Matter
By: James A. Gober
When a tenant assigns its rights and interest under a lease to a successor tenant, the enforceability of the assignment and its legal consequences are usually addressed and governed by language in the assignor-tenant’s lease or a lease assignment document. The landlord’s attorney usually will provide carefully-crafted language sufficient to resolve almost every issue related to assignment that could arise. Even so, it is helpful to understand the law behind assignment provisions and to be aware of the most common legal issues landlords sometimes face despite those protective provisions.  More >

To the extent any of us can be of service, please do not hesitate to contact any members of the Retail Industry Team

This newsletter is published by Arnall Golden Gregory’s Retail Industry Team. This information presented provides a general summary of recent legal and regulatory developments. It is not intended to be, and should not be relied upon as legal advice. For more information about the Retail Industry Team, please contact Jonathan L Neville or David J. Marmins.
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