Vault Space Clause
(Commercial Lease) (NY)

Summary

This vault space clause may be included in a commercial lease for real property in New York to address the use of enclosed space contiguous to or adjacent to the leased property that may be subject to termination by governmental authorities. This template includes practical guidance and a drafting note. "Vault space" generally refers to space that is enclosed and contiguous to a basement that extends past a property line, often under a public right-of-way such as a sidewalk or alley. A landlord cannot grant a tenant an absolute right to the possession of vault space that extends beyond the property line. Leasing provisions dealing with vault space normally state that such space is not included in the lease. Instead, the right to use such space is conveyed on the condition that there will be no abatement in rent if such right is subsequently terminated by a governmental authority, and on the further condition that any fees for continued use and any costs for removal shall be borne by the tenant. Often, the right to such use is conveyed in the form of a license, revocable by any appropriate authority. In dealing with encroachments in general, commercial leases typically exonerate the landlord from any liability and impose no obligation on the tenant to remove them unless required by governmental authority or superior title. The capitalized terms and section references used in this clause should be conformed to those used in the relevant commercial lease. For sample commercial lease templates for use in New York, see Industrial/Warehouse Lease (Short Form) (Pro-Landlord) (NY), Office Lease (NY), Office Lease Agreement (Short Form) (NY), Restaurant Lease Agreement (Long Form, Net Lease, Shopping Center) (Pro-Landlord) (NY), Retail Lease (NY), Retail Lease Agreement (Long Form) (NY), and Retail Lease Agreement (Short Form) (Pro-Landlord) (NY). For guidance on office leasing in New York, see Office Leasing Resource Kit (NY). For further information on commercial leasing, see Industrial Leasing Resource Kit, Office Leasing Resource Kit, Restaurant Leasing Resource Kit, and Retail Leasing Resource Kit. See also Junior Associate Real Estate Resource Kit (Commercial Leasing).