Chapter 4 - § 4.7 • PARKING

• Jurisdiction: Colorado

§ 4.7 • PARKING

For many tenants, parking is critical to their business. Parking spaces often are in short supply. Therefore, it is no surprise that the parking provisions of a lease are often highly negotiated. Parking provisions also tend to be very detailed, and the more important parking is to the tenant, the more detailed the lease provisions relating to parking should be. Retail tenants tend to be especially particular about parking.

§ 4.7.1—Landlord's Concerns

The landlord's concerns as to parking include: (1) meeting the legal parking requirements for the premises and the tenant's use; (2) getting the most economic value from the parking the marketplace will yield; (3) retaining flexibility (you never know when you might need that piece of the parking lot); (4) avoiding liability (cars and lawsuits just seem to go together); and (5) minimizing the landlord's liability for any loss of parking or interruption in use.

§ 4.7.2—Tenant's Concerns

A tenant's primary parking-related concerns are: (1) having adequate parking for its immediate and future needs and certainly to meet any zoning requirement for its use of the premises; (2) having parking as cheaply as possible; (3) having parking facilities policed so that spaces are available when needed and the parking facility is safe; and (4) having parking continuously available, with no disruption to the tenant's business.

§ 4.7.3—Number and Type of Spaces

Generally, the most important consideration is the number of parking spaces. In multi-tenant buildings, this is commonly expressed as a ratio, such as one space per 1,000 square feet (fractions do not work here). The tenant might want the lease to specify the number of spaces in terms of full-size, compact, visitor, and handicapped spaces.

The number of parking spaces should meet the requirements of the zoning laws applicable to the premises. Occasionally, parking requirements are also included in restrictive covenants affecting the building, and restrictive covenants should be examined for that purpose. Since parking requirements under zoning laws are often different for different uses, even in the same premises, the parties should confirm that the number and type of spaces provided for in the lease make the tenant's proposed use of the premises lawful. The tenant should either confirm the lawfulness of the parking for itself or obtain a representation and warranty from the landlord — although, if the representation and warranty is wrong, the...