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Question
I need to give you a little background on this situation. I recently took over a salon in which there were two other owners of, Deb (the origina)and Jess. The space is rented out of building in a small town (We seem to do things more casual around here) Deb had a space in which she rented to a massage therapist within her salon, and when Deb moved, Jess took over the salon. But the massage therapist then started to rent from the building owner. When Jess moved out, I took over the salon, renamed it and began my own business. I didn't like the idea of the massage therapist going through my business but was reassured she was trustworthy and didn't have money to go looking into legal matters. When the building owner came to us with leases, the massage therapist told him that she wouldn't sign in until she knew that the arrangement would work. (I work full time, where the previous was only part time and the two never saw each other) It basically is a noise issue that we are concerned with. So my question is this...if the massage therapist decides that the arrangement doesn't work and leaves, do I have to agree to a possible new tenant (business) going through my business. I didn't like the idea in the first place, but if she leaves I don't want another business restarting and taking the chance of something happening to my stuff. It is putting all of my assets in the hands of someone else and trusting them. I don't feel I need to do this. I almost feel like it's grandfathered in at this point but when the massage therapist and building owners relationship would be over so is the idea of another business going in there, unless it has a seperate entrance from the outside, rather using my door to get to theirs. I live in MN.
Shari-
There is only one thing that can be done to solve your problem because otherwise I would have to literally write a couple of extra pages full of additional lease provisions that would have to be included in your new lease - and the therapist lease - to avoid disputes with the therapist about using your space to access their own space.
Your landlord has to create another way to access the therapists space without going through your premises. The situation you have now is impossible to live with by either tenant and will only cause disputes in the future. If your landlord prepares the lease documents my guess is that it will not include enough new language to anticipate every problem that could arise during the lease term.
Sorry, but it is the only reasonable solution. I do not know how the occupants of either space have lived with this arrangement up until now.
Good luck.
-Jim
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Answers by Expert:
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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