leasehold improvements

[jaderpup]

i own a commercial building that is now leased as office space. because the new tenants changed the purpose of the building, they had to do a great deal up updating at their cost ($200,000).
the rent amount that we agreed on was based on "no cost to me" for any of the code updates and improvements that they would need in order to operate their type of business.
it was my understanding the improvements were "permanent type improvements & attached fixtures" (walls, doors, toilets, electrical ect...) and they would remain with the property after the lease terminated.
i recently received a letter from the tenants stating they would like to sell these "leasehold improvements" to me for a whopping fee or take them when they leave. this means i would have a partially completed building after they leave. (remember, they changed the purpose of the building)- can they do this to me now or will they have to leave these improvements?
there is a written lease between us, it's very simple with little detail and definitely nothing about leasehold improvements - but it does state, (per their request), "at the conclusion of this lease, lessee shall restore any structural modifications and return premises to lessor in the current condition."
(we both gave our request when we negotiated the lease agreement and i allowed this one) is this a catch for them now and maybe even why they requested it in the first place? if it is, does it matter that all along i was told, verbally, it was just for my protection and only meant whatever i chose to have restored is what they would have to restore?

is there an automatic "leasehold improvement law" because we don't have it in our lease? does it favor me or them? does a verbal covenant apply here at all? what can i do?

[Edited by jaderpup on 03-16-2001 at 12:40 AM]

 

[LL]

Your "written lease between us, it's very simple with little detail and definitely nothing about leasehold improvements - but it does state, (per their request), "at the conclusion of this lease, lessee shall restore any structural modifications and return premises to lessor in the current condition."

That's the agreement. It you wanted more, then you should have drafted the lease accordingly.

 

[jaderpup]

ok, i understand that but then it would also mean the rest of the improvements would also have to be put back to original condition - they knocked holes in brick walls to make doorways, holes in roof to install vents, holes in floors and walls for electrical outlets and so on and so on.
it will probably cost them 1/2 of what they spent already to put back in original condition. this building has been completely changed structually - of course i don't really want this either but is it a negotiating tool for me as well?
in order to get my permission to do some of these repairs (which that is in our lease) they had to ok with me first (which they did not always do but...) it was then that the verbal agreements were made as to items that would stay. if i allow them to take part of the improvements and not others, do they have to replace with something else or just leave holes where these item were?????
i have worked with them more than one time on issues that were not in our lease but i do not want them to keep coming back changing the rules as they see fit.

 

[LL]

Why would the rest of the improvements also have to be put back to original condition? You haven't described anything that sound like "structural modifications".

Your "verbal agreements" probably aren't worth anything.

Next time, get a lawyer to draft a rental agreement for you, since you evidently don't understand how to do it yourself.