Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Scott E. Mollen Scott E. Mollen

Commercial Landlord-Tenant—Tenant Failed to Timely Provide Required Itemized List of Expenses To Receive Tenant Improvement Allowance—Lease Did Not Authorize Submission of Combined Expenses Relating to Two Separate Leases

An office building owner (owner) moved for summary judgment dismissing a complaint. The plaintiff, a commercial tenant, opposed the motion and cross-moved for summary judgment on its causes of action and to dismiss the owner’s counterclaims. The parties had executed a lease for part of the twelfth floor of the subject building (building). At the same time, the parties entered into a separate lease with a related, but different entity, for part of the eighth floor of the same building. Each lease required the owner to reimburse the tenant for all improvements made by the tenants, pursuant to a tenant improvement allowance (TIA) agreement. To receive the TIA, the tenants were required to request reimbursement and submit documentation to the owner within eighteen months of the commencement of the leases.

On Aug. 13, 2014, a manager for the tenants’ “parent” corporation submitted a combined reimbursement request for both leases, totaling approximately $2 million. On the same day, the owner advised the tenants’ project manager that the tenants’ TIA reimbursement request had to be separated since they involved two separate leases. The owner also advised that the request was to be on company letterhead, the request appeared to exceed the combined amount for the leases’ TIA and “soft costs” were not to exceed 20% of the requested TIA payment.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 3 articles* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?

Law Firms Mentioned


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.