Feature
September 18, 2020
By enabling tenants to surrender part of their space, contraction options can keep tenants viable, out of bankruptcy, and in their leases. This may be the perfect antidote to the staff reductions, stay-at-home orders, and uncertainty over future space needs created by the pandemic.
Traps to Avoid
September 18, 2020
Listing the name of the person or entity that guarantees a tenant’s lease performance in the text of the guaranty seems like a perfectly normal and sensible thing to do. But it can have unforeseen and unfavorable legal consequences. The problem is that adding, subtracting, and changing...
Winners & Losers
September 18, 2020
Historically, boilerplate force majeure clauses have excused parties from performing lease obligations made impossible by unforeseen and unpreventable events, including government actions that make performance impossible. During the pandemic, retail and restaurant tenants across the country relied...
Owner Wins
September 18, 2020
What Happened: Six years into its 10-year term, an owner exercised its lease right to adjust a dental clinic tenant’s rent. But the clinic refused to pay the increase and moved out. The owner claimed the clinic was in default, terminated the lease, and demanded $1.5 million in accelerated...
Owner Wins
September 18, 2020
What Happened: A medical tenant repeatedly paid rent late without late fees or any other penalties. But then the building was sold. And the new owner wasn’t as forgiving or tolerant of the tenant’s personal stresses and “business ups and downs” as the previous one. Within...
Owner Wins
September 18, 2020
What Happened: Only 10,000 of the tenant’s 560,000 square-foot recycling warehouse had fire department approval for occupancy. And while the tenants were advised to do so, they never installed the necessary, code-compliant sprinkler and water flow systems. So, when the warehouse burned down...
Feature
August 25, 2020
By Matthew S. Raczkowski, Esq.
In the News
August 25, 2020
Now that most states have lifted their moratoria on commercial evictions, tenants strapped by COVID-19 losses are increasingly seeking refuge in bankruptcy courts. But while the automatic stay buys tenants some time to decide whether to reject their lease, tenants in bankruptcy still have to pay...
Pop Quiz
August 25, 2020
SITUATION
Commercial property is condemned. The tenant, a petroleum company, seeks a portion of the condemnation award compensating it for its remaining leasehold interest. The lease includes the following two provisions dealing with the tenant’s rights in the event the property is condemned...
Owner Wins
August 25, 2020
What Happened: After paying only partial rent in April, Bed Bath & Beyond (BB&B) paid no rent in May, claiming that the Louisiana governor’s COVID-19 order closing “all malls, except for stores in a mall that have a direct outdoor entrance and exit that provide essential...
