Commercial Real Estate Investment/Lockout and property seizure

Advertisement


Question
a marine technician was contacted by a landlord in Bradenton , Florida to rent a former storage space as an affordable machine shop when the boating industry in Florida began to slow down. THe technician had sold his tools, moved to the storage facility which was not cooled and cleaned as promised by the landlord.

the marine technician made improvements to modify the storage facility so it would be moderately suitable for him and his employees to work, he spent a great deal on upgrading the storage unit, suffered financially as the landlord harassed him for a months back rent in the presence of customers, lost clientele, suffered a serious heat stroke in the facility.  The tools and equipment are not his property, the landlord has hired attorneys and locked this stroke victim out of the storage unit.

The stroke victim and former commercial tenant had taken photos to assure the owner of the equipment that the property was still there, had the stroke and the owner's agent went to claim the property and was unable to gain access.

The tenant is in the care of a physician in Illinois and has asked me to find out if the owner has any legal recourse to gain entry and see what is left of the equipment.

Witnesses attest that the owner has removed and used the equipment for his personal business.

They just want to know what is left, what he has taken.  He wants 60K to release what is left of the tenants equipment, there is about 6000 is back rent owed but the tenant was unable to generate income because of the public harassment of the landlord in the presence of clients and the horrendous working conditions in a steel building unrelenting florida heat last summer (106 degrees for two solid months during which the landlord constantly belittled and harassed the tenant)

Answer
Kate:

It sounds as if this matter has gotten away from both parties without equitable resolution and that both parties may have a legal claim against the other.  The issue of the landlord taking  possession of the tenant's equipment, harassment, etc. are all matters that may in fact have significance in legal resolution of this matter, but you must get an attorney to advise you regarding what actions you should take FIRST and then proceed step by step.  

If the landlord locked the tenant out of it's rented premises, or a portion of its premises, the Lease should have contained what is known as a "Self Help" provision (that is not what that it will be referred to as in the actual text of the lease however) that, under specific circumstances, allows a landlord to lock out the tenant without first filing a legal action to take the tenant to a local court to resolve the dispute.  In the local court; a judge, makes the decision as to who is legally at fault, especially in a situation where both parties are at fault.    If the landlord can prove that the tenant was actually in default of the terms of the lease, AND THAT THE LANDLORD ITSELF WAS NOT ALSO IN DEFAULT, (It sounds as if the landlord may have also been in default if it did, in fact, fail to clean and cool the premises for when the tenant moved into the premises) it may prevail in the case against the tenant.   The tenant may also have to file a legal action against the landlord if the landlord has wrongfully locked the tenant out of all or a portion of the leased premises.  You need to get legal advice in this regard right away.

The point is, that this matter seems to be a legal matter at this point in the dispute, and you need to find a local Florida attorney to quickly review the tenant's Lease, the FACTS of the case
and take whatever legal actions are appropriate.  I am not an attorney and therefore cannot give you legal advice.   I suggest that you find an attorney to handle your case immediately.

Best of luck,

- Jim

Commercial Real Estate Investment

All Answers


Answers by Expert:


Ask Experts

Volunteer


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.

©2012 About.com, a part of The New York Times Company. All rights reserved.