Article by Stephanie Friese, Christine Norstadt and Jennifer Garner on “Some Guidelines on Rent Relief and Lease Obligations”
In an article published on May 13, 2020 in National Real Estate Investor, Stephanie Friese, Christine Norstadt and Jennifer Garner discuss rent relief and lease obligations for commercial tenants.
“Office, industrial, and multifamily landlords will likely receive most, albeit with some shortfall, of rents because tenants in these sectors have not been affected as much as in the retail sector, where we are hearing reports that as many as 40-50 percent of retail tenants will not re-open,” the authors explain.
During this unprecedented time, it is important for landlords to time relief right. Friese, Norstadt and Garner explain that landlords should assess the specific tenant’s needs and determine whether relief is needed, and if so, whether it will actually allow the tenant to succeed.
“The bottom line is that barring some extraordinary clause which can be imagined but which we haven’t seen yet, tenants are not, by virtue of a governmental order, excused from paying rent under the force majeure clause or any other clause of the lease,” said Friese, Norstadt and Garner.
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