| Office Leases – Basic Structures. Office leases generally require the tenant, directly or indirectly, to pay its proportionate share of the operating costs of the building in addition to paying fixed monthly rent. Under a net lease, the tenant pays operating costs in addition to fixed monthly rent. (A “triple net” lease means that operating costs, taxes and insurance are paid by the tenant in addition to fixed monthly rent.) In contrast, under a gross lease, a threshold amount of operating costs, taxes and insurance is included as a component of the fixed monthly rent and the tenant is required to pay any increase above such threshold. There are three general types of gross leases: (i) a Base Year lease; (ii) an Expense Stop lease; and (iii) a Full Service or Plus-E lease. A thorough understanding and proper use of these lease terms will result in more efficient communications with your landlord, tenant and attorney. Veronica C. Law |
Veronica Chavez Law Senior Associate Email Mrs. Law
Gary M. Moates Shareholder Board Certified Commercial Real Estate Law by the Texas Board of Legal Specialization Email Mr. Moates
Bradley H. Rice Shareholder Email Mr. Rice |
| Advance planning required when oilpatch comes to the city. A few years ago, the City of Fort Worth Zoning Commission approved zoning for the first Barnett Shale gas well in the city limits of Fort Worth. As a member of the commission at that time, I knew the event was historic, but its significance becomes more apparent every day. Unlike the southeast Texas oil production of the early 1900s, which created boom towns such as Beaumont, the Barnett Shale has brought the oilpatch to the city. In this circumstance, it is inevitable that conflicts between the rights of the owner of the surface of property and those of the mineral owner will occur. The laws governing the respective rights of mineral and surface owners are well established. The owner of the minerals, or its lessee, has the right to use as much of the surface as is reasonably necessary to produce and remove the minerals and such right must be exercised with due regard to the rights of the surface owner. The mineral owner, or its lessee, must attempt to reasonably accommodate any existing use of the surface. The implementation of these laws often creates conflict which can be avoided with advance planning for surface waivers, well site designations, etc. Gary M. Moates | When is retainage at risk? Most construction projects of any size provide for retainage withholding. Many derivative claimants run the risk of losing lien rights to their retainage. Assume a derivative claimant is timely paid its draws, less retainage. At the end of the project the derivative claimant does not receive its retainage. If the derivative claimant sends a lien notice letter it may be in for a rude awakening that it has no lien rights in the retainage. Retainage is earned each month the work is performed. Since retainage was not paid, the subcontractor should have been sending monthly notices to the owner advising it of the retainage nonpayment in order to timely preserve its lien rights. Fortunately the Property Code provides an easy solution. A claimant has the right to provide the owner notice of its retainage agreement at the beginning of the job. If the derivative claimant provides the owner notice no later than the 15th day of the second month following the initial month in which materials are delivered or labor is performed, the derivative claimant does not need to provide any additional notices regarding the retainage amount. Section 53.057 set forth the requirements of the notice. Bradley H. Rice |
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