You want iron-clad protection. Your tenants want flexibility. Good news: you can have both.

Here’s how to negotiate leases that protect your investment and keep quality tenants signing.

Co-Tenancy Clauses

The problem: Retail tenants don’t want to be stuck in a ghost town if anchors leave.

Your risk: Poorly written clauses let tenants walk too easily.

The fix:

• Only offer these to tenants who actually drive traffic
• Name specific anchors (not just “major retailers”)
• Set exact occupancy thresholds (like “75% occupied”)
• Require 60-180 days to fix the problem before anything triggers
• Make termination the last step—not the first

Early Termination Rights

Sometimes you have to offer this. Fine. But get paid for it.

Charge:

• Several months’ rent as a termination fee
• Full payback of any TIs and commissions you fronted
• The rent difference if you can only find a cheaper tenant

One trick: Call these “option prices” instead of “penalties.” Judges enforce options. They often toss penalties.

Force Majeure Clauses

COVID rewrote the rules here.

Courts read these very narrowly. If it’s not listed, it doesn’t count.

Three must-haves:

• If you mention “pandemics,” define exactly what that means
• Say clearly: force majeure never excuses rent
• Require fast notice and real efforts to fix the problem

Operating Expenses

This is where landlords lose money without realizing it.

Write in:

• Broad definitions (give yourself room)
• Capital costs that save money or meet new laws
• Gross-up clauses for half-empty buildings
• Management fees (but don’t double-charge)

Stop Giving Away Flexibility

Expansion rights. Renewal options. These have real value.

Don’t just hand them over. Price them.

Use your data. Figure out what these options cost you. Then charge for them—through higher rent, option fees, or better terms elsewhere.

Now you’re not losing. You’re trading.

Assignment and Subletting

You need approval rights. That’s non-negotiable.

But here’s the trade-off: some flexibility here makes tenants comfortable with longer terms.

The move: Set clear rules for who’s acceptable. You stay in control. They feel secure. Everybody wins.

Maintenance and Repairs

Vague language here = future fights.

Spell out exactly who handles:

• HVAC
• Roof
• Structure
• Everything else

No surprises. No arguments.

Default Provisions

Hope for the best. Plan for the worst.

Your lease should cover:

• What counts as default (not just missed rent)
• How long tenants get to fix it
• What you can do: evict, sue for damages, accelerate the lease

Personal Guaranties

New business? Weak credit? Get a guaranty.

Ways to make it work:

• Cover just the first few years
• Cap the amount
• Use a “good guy” guaranty (they’re released if they leave cleanly)

These can unstick deals that seem dead.

Need Help?

Williams Capital Advisors negotiates leases for Southern California property owners every day. We know what’s standard. We know what’s risky. We find solutions that work for both sides.

(213) 880-8107 | francisco.Williams@williamscap.ai | williamscapitaladvisors.com