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Commercial Tenant Leasing Tips – Site Plan

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By Harvey Haber

Site Plan

On the Landlord’s site plan, indicate that the area hatched in black sets out the approximate location of the leased premises. Why? Because the Landlord does not want a misrepresentation action against the Landlord in which the Tenant argues that the hatched area is not the exact location of the leased premises. A change in layout of the development may have caused a slight change in the location of the leased premises.

Approximate Location

Change the offer to lease or the lease so that the Tenant’s premises is shown cross-hatched in black on the site plan rather than being outlined in red. Why? Because when running copies of the offer to lease or the lease to be signed, it’s often forgotten to outline the premises in red on the site plan. If the premises are shown cross-hatched in black, then there is no worry as the photocopy clearly picks this up – whether you make one or one hundred copies!

Use Clause

When drafting a use clause for insertion into the landlord’s lease, carefully examine each of the items the tenant seeks to sell in its premises. Why? Because the Landlord wants to (i) avoid overlap among the landlord’s tenants, (ii) keep a good tenant mix, and (iii) make sure that the Landlord does not breach any exclusive covenant given by the landlord to another tenant.

Harvey Haber is a retired lawyer and now a panel member, acting as a mediator or arbitrator with COE ADR Management and can be contacted at harveyhaber@bellnet.ca


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