Coronavirus and Considerations for Real Estate Transactions: LEASINGMarch 19, 2020
Increasingly, we are experiencing market disruptions and governmental restrictions that have far reaching impacts on landlord-tenant relationships. Herrick’s Leasing Team has been advising our landlord clients and tenant clients on a myriad of concerns relating to their commercial leases. Below is a sample of the most common questions raised:
- Should I call my landlord to discuss a rent abatement? If so, should I make the request today or wait and see?
- As the landlord, how should I respond to my tenant asking for a rent abatement?
- Do force majeure clauses apply as a result of the pandemic and, if so, what landlord or tenant lease obligations may be delayed as a result?
- Can I close my building to the public or tenants? What do I do if my building closes?
- Will insurance help to minimize the financial losses result from the pandemic? In connection with insurance questions, please see the in-depth client alert by our partner, Alan Lyons, titled: Coronavirus — Potential Availability of Insurance for Business Losses.
- What should I do if construction delays have impeded my ability to move out of my space or to deliver space in a timely manner?
- How should I deal with my mortgage lender or my financing partners?
With the situation continuing to evolve, there are no easy answers and the appropriate approach will depend on the situation that a particular landlord or tenant faces. Herrick is actively monitoring the situation and accumulating a broad range of market intelligence from our discussions. We are here to help landlords and tenants develop creative solutions to address the most complex problems presented to us.
© 2020 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.