Appellate Court Rules on 'Usable Space' Under Commercial Leases

March 05, 2009

In Muzzi v. Bel Air Mart (2009) 2009 DJDAR 2590, the appellate court found that Bel Air's storage of bread racks and other items in parking spaces was not permissible under lease provisions permitting the loading and unloading of merchandise. Bel Air leased a portion of a large shopping center in Sacramento. Bel Air used parking spaces behind the store, near one of the loading docks, having placed large storage containers for inventory of seasonal items. The landlord took the position that this such use of common area parking spaces violated the lease provisions; basically, that Bel Air in effect occupied more space than for which it paid rent. The court found that loading and unloading may be permissible but that the more permanent storage here violated the lease terms.

Based on Muzzi, those commercial tenants whose use has expanded beyond their premises are advised to review their leases carefully to ensure that this use is permitted and, if not, to seek lease amendments permitting this use.