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Real Estate Focus: Winter 2018
Chuhak & Tecson Employment Focus

 

“Pop-up” shops should not result in “pop-up liabilities”

We’ve all seen them and you’ve likely shopped at many of them. Whether it is the seasonal Halloween or Christmas shop, an art gallery exhibition of a hot local artist, or even more famous, nationally branded companies using pop-up shops to build up the profile and exposure of new products, these temporary tenancies continue to reap benefits for landlords and tenants alike. A “pop-up” retail space is simply a retail tenancy involving a tenant which “pops up” and then is gone anywhere from one day to a few months later.

There are several benefits of such pop-up shops to both landlords and tenants. For the landlord, pop-up shops can provide a short-term answer to vacancies in a building. Under normal circumstances, a landlord would obviously prefer a long-term credit tenant; however, during the times of 
vacancy while pursuing such a tenant, an ongoing empty space can create a negative effect on the building. A short-term pop-up shop can add an element of freshness, vibrancy and, of course, foot-traffic to an otherwise stale space and, let’s not forget that discounted rent is better than no rent at all. For the tenant, a pop-up shop can be a cost-effective way to not only sell seasonal products in a brick-and-mortar space but also a method to test and market new goods and services without committing to a long-term lease.

Although such pop-up shops can be appealing to both landlords and tenants, the lease document memorializing such a tenancy should still be carefully contemplated by both sides.


To read more, click here.

Is a series LLC a good fit for your real estate assets?


Illinois is currently one of 16 states (and the District of Columbia) that recognizes Series Limited Liability Companies (LLC) by statute. A Series LLC is a single LLC which consists of a “master” LLC and multiple series, each of which is a “mini” LLC. The structure is similar to that of a parent corporation and its subsidiaries. Each series may have its own members, managers, assets and purpose.

Series LLCs are often great cost-effective tools for real estate investors to separate personal assets from investment assets. The primary benefit of a Series LLC is that the assets of each series are shielded from the assets of the other series and the master LLC. Unlike some other state statutes, the Illinois statute contains specific language to this effect and provides that the debts and liabilities of one series are enforceable only against the assets of that individual series and not against the assets of any other series or the LLC generally. Therefore, a Series LLC avoids the need of establishing multiple LLCs to separate parcels of real estate for liability protection purposes.

To continue reading, click here.
Featured Attorneys
Shay Baldwin
K. Shaylan Baldwin,
Principal and
Practice Group Leader

sbaldwin@chuhak.com
Kathryn Kaler
Kathryn Kaler,
Associate

kkaler@chuhak.com
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Leading Lawyers Magazine profiles Principal Jamie Stevens

   


Problem solving is key to his success in condominium law
 
Condominium & Common Interest Community Association principal Jamie Stevens reflects on how his upbringing led him to a successful practice in this profile published in Leading Lawyers Magazine Real Estate Edition for 2018.
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