By: Will Van Vactor
COVID-19 is impacting a large number of businesses. Many businesses operate in spaces that the business owner rents pursuant to a commercial lease. For tenants, complying with the terms of the lease agreement when its business has been forced to shut down or operate from alternative locations can be a real challenge. For landlords, a tenant's default can jeopardize the landlord's position with its lender and otherwise threaten its business.
This blog post is intended to provide some general guidance for both landlords and tenants dealing with issues created by the sudden market impact of coronavirus. Subsequent posts will address common lease provisions that might be in dispute between a landlord and tenant given the current circumstances.
For landlords facing the risk of tenant default, you should:
In sum, it is important to be familiar with your lease, any applicable loan documents, and possibly your commercial insurance policy. We also believe that open communication is important so that everyone understands the challenges and needs of the impacted parties.
Lastly, every case is different, so it is important to discuss your case with your attorney to ensure you employ the best strategy given the facts specific to your situation.
The information on this blog is for general informational purposes only. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship. Nothing on this site should be taken as legal advice for any individual case or situation. This blog should not be used as a substitute for competent legal advice from an attorney licensed to practice law in your state.
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