Legal services provided to store tenants in shopping centres
Our services:
Our broad experience in the shopping centre market in Poland singles us out from other legal firms. As a consequence, we had a chance to visit and review a lot of shopping facilities in Poland and we know both their weaknesses and strengths. We can assess in advance the business consequences of decisions made by our Clients and present relevant recommendations to them.
Legal knowledge itself is insufficient in relations with shopping centres and must be combined with practice as far as technical and construction solutions, shared cost settlement methods and ever-changing practices of shopping centre management companies are concerned. We have all these competences due to our ongoing contact with the lease market.
Lease agreements concerning stores and premises in a shopping centre are extremely extensive and complicated. They are a combination of a number of legal mechanisms, which in an appropriate configuration create a huge advantage of a shopping centre over the tenant. This advantage can be eliminated to a certain extent to the benefit of the tenant. This can be done with the assistance of lawyers who know business reality of shopping centres and who have experience in the practical application of specific contractual clauses.
The market standard is to conclude such agreements for a fixed term (e.g., for 5 years). Their characteristic feature is the lack of possibility for early termination – unless the agreement itself explicitly states specific situations in which it is permitted.
In practice, shopping malls reserve many such cases for themselves, while tenants rarely have similar rights negotiated. However, it is worth remembering that the Civil Code itself, in exceptional and extreme situations, gives the tenant the right to terminate the agreement. Every such case, however, requires an individual legal analysis.
Inexperienced tenants often focus solely on the rent amount. Meanwhile, these agreements range from several dozen to even over a hundred pages. It is worth investing in their thorough understanding, as a single overlooked mistake can cost an entrepreneur hundreds of thousands of zlotys.
The key elements that need to be negotiated are:
They are crucial. Very often, tenants focus on negotiating the main body of the agreement, completely forgetting about the appendices.
Meanwhile, this is exactly where provisions generating huge additional costs are hidden – e.g., technical specifications of the premises, exorbitant fit-out standards, or price lists for additional services (e.g., installation or maintenance of fire protection/sprinkler systems).
The tenant’s starting position is generally weaker, and the agreement with a shopping mall is inherently asymmetrical. However, a weaker contractual position does not mean a lack of chances. A precise knowledge of the realities of this industry, as well as the operational mechanisms of malls and the investment funds behind them, allows us to identify their weak points and effectively defend the tenant’s interests.
Yes. We have been operating in the shopping mall market since 2010, and during this time, we have won dozens of complex lawsuits for tenants and led to many extremely favorable settlements that saved our clients’ businesses.
If you run a business and look for a partner to provide you with legal services, please do not hesitate to contact us.
contact:
+48 669 561 522
biuro@henclewskiwyjatek.pl