Commercial Real Estate Investment/Commercial landlord

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Expert: - 2/22/2010


Question
Does the landlord have the right to demand keys of your premises and the offices within your premises that you are leasing ?

We have specific storage areas that should only be accessed by HIPAA compliant individuals from our company - the landlord is requesting keys to access those areas. Do we have to comply ?
Thanks

Answer
Dan-

A majority of leases address the issue of who can have a key to special locks in the tenant space.  Most leases say the tenant must get the landlord's approval before the tenant can install separately keyed internal suite locks.  If you agree to waive the landlord's liability for breaking down your suite entry door when he or his agents (like the building engineer, janitor, or security guards) need to get into your space, the landlord may not be concerned about not having a key to your premises.  I assume your lease is not specific on this matter.

You should also check the HIPPA regulations regarding whether the tenant is allowed to dispense a key to the landlord regardless of what the lease text stipulates.  My poor memory of this provision is that the HIPPA regulations require the tenant to have a locked compartment for their records, but I don't believe it states that the landlord cannot be given an extra key.

You will have to check the HIPPA Federal regulations on this question.

Good Luck.

-Jim  

Commercial Real Estate Investment

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Jim Avancena, CPM

Expertise

Best qualified to answer questions that involve commercial leases, that is, basic issues as well as the often unexpected effects of the complexities and inter-relationships of the provisions a lease may contain, explain how seemingly innocuous text in your lease can have a major impact on a Tenant or Landlord and their business operations, and the common practices utilized in the industry. I can untangle most matters that may come up from the time a tenant begins searching for a office or store space and the lease acquisition process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of problems that may come up during the lease term and even after a tenant moves out. I have practical experience with most property management issues and resolving landlord and tenant disputes - especially those involving what may appear to be overcharges assessed for additional lease charges like CAM costs, operating expense reimbursement, real estate taxes, utilities, construction improvements etc. Note that I am not an attorney and cannot provide legal advice.

Experience

Thirty 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 participate in organizations with continuing and specific time requirements.

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 full pages) feature story on January 13, 1993; titled "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 in Maryland and the District of Columbia.

Awards and Honors
The same plaques and honors that most others in my industry have earned. I have none that I consider especially meaningful.

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.

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