AboutJim Avancena Expertise I am best qualified to answer any questions that involve commercial leases, the complexities and inter-relationships of the myriad provisions that a lease may contain, and explain how they commonly effect a landlord or tenant in their day-to-day business operation. I can explain most matters that will come up during of the full lease cycle from standard industry practices regarding the lease acquistion process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of other problems that may come up during the lease term. I have practical experience with most property management issues and resolving landlord and tenant disputes. Note that I am not an attorney and cannot provide legal advice.
Experience Twenty-eight years active experience in the commercial real estate industry as a licensed real estate broker in the Washington DC Metro area(DC, Northern Virginia & Maryland). I have been admitted (approved) by the Maryland and DC courts to testify as an expert witness on the subjects of Commercial Leasing and Property Management in the area of standard industry practices. I have had a business for the last 14 years advising virtually every form of business entity from large national corporations to the smallest ma & pa new businesses regarding a wide range of commercial real estate matters in addition to property management and commercial leasing.
Organizations Currently my three children keep me so busy that it is difficult to find time to participate in organizations.
Publications I publish a local commercial real estate newsletter titled: "Tenants First". My firm was the subject of a high profile Washington Post business section cover page (2.25 page)feature story on January 13, 1993; "Overcharging Overhead".
Education/Credentials BA in Political Science from Memphis University, and five years of study in the real estate development summer program at MIT. I was certified as a commercial property manager (CPM-IREM), and currently hold a brokers license licensed in Maryland and the District of Columbia.
Awards and Honors Routine, the same plaques and honors that most others in my industry have earned, none that are significant.
Past/Present Clients Past clients include: The World Bank, George Washington University, National Association of Criminal Defense Attorneys, US Department of Commerce, The American Benefits Council, K-Mart Development, many law firms, a national union, other major organizations, and many, many small business firms and retail operators that I am most honored to serve. I estimate more than 1,500 firms/organizations.
Question Hello Jim,
This may be a legal question, but I would still be interested in hearing your gut feeling. Obviously, I recognize that your opinion is non-binding and does not count here. Please give me your spill on this matter.
I completed first 5-year Original Lease with One five-year renewal in July 2005. (Total 10 years of Tenancy). In July 2005, the lease was extended for 3 more years with landlord granting Two (2) additional options to renew the lease for Three (3) additional years at the Fair Market rental rate. I finished my lease extension in July 2008.
Now, as required by the lease, I sent a due notice to the Landlord for exercising my First renewal of additional three years that would have renewed my lease up to June 2011. I started negotiating renewal with the Landlord appointed leasing agent. After negotiating lease for few weeks with this leasing agent, he quit employment with Landlord. So officially, NO new lease signed. Nobody from Landlord's side continued the renewal negotiations; meanwhile I kept getting usual (original) rental invoices from the landlord, where I kept making rental payments every month. I am now into my sixteenth (16) months Tenancy, as I paid 16 months of rent under the lease. Now landlord sent me 30-day ‘Notice to vacate’ letter since I never renewed lease. My response to landlord was “your continued acceptance of my monthly rental and course of dealing over sixteen months is a ratification of lease.
So what is your gut feeling on this, do I have a valid lease?
Tom
Answer Tom:
I am not an attorney so I cannot advise you as a legal matter.
Your landlord apparently considers you to be what is called a "Tenant by the Month". Therefore, your lease text probably allows your landlord to send you a written 30 day notice (In most areas the notice MUST reach you on or before the FIRST day of a month or it doesn't take effect until the end of the following month) to vacate the premises as the end of the month.
Did you sign a Certified Mail Return Receipt when you got the landlords' notice (or other formal mail service like Federal Express, etc)? What day is the receipt that you signed dated or the date that Federal Express will say they delivered it? If it is dated after the first, you can likely advise the landlord formally that you will be staying until the end of the next month following if you wish to pay for another months rent and stay for another 30 days. You will have to go then however.
If you correctly gave formal notice to your landlord of your wish to renew 16 months ago, and depending upon the PRECISE language of your renewal right, you may still have recourse to complete the negotiation to renew with your landlord. You will need to have an attorney to advise you in this regard.
Does your landlord have someone that wants to lease your space? The real estate market is very soft in most areas now and if your landlord has other spaces about your size space vacant also, it may be that he is using his notice to try to intimidate you into signing a new lease for your existing space with an above market rental rate.
You should immediately find alternative space to relocate your office and negotiate a new lease. If you got your notice correctly from the landlord, you will need to move out when the 30 day notice states. If your landlord wants to negotiate a new lease, don't sign a lease for alternative space until you find out if you will be able to renew again and avoid moving. You must make the renewal deal at your current location quickly because you will have to move to an alternative space soon if you cannot come to terms. Landlords will string you along to pressure you to come to their terms on rent.
I am sorry, but your continued payment of the monthly rent for 16 months does not earn you the right to say that your lease is now ratified. You should check with an attorney, however, to discover if your renewal right - since you exercised it - still holds any value toward the a renewal of your lease.
