Coronavirus Crisis: Difficult Decisions Ahead for Landlords and Tenants
As of this writing, our world is battling a global pandemic of unprecedented proportion. Already many articles have been written about the applicability of the force majeure lease clause and other potential escape hatches for each party. The outcomes of these disputes may be resolved by the courts in months and years to come, and will likely depend on specific language in those clauses. Rather than address those various opinions and predictions, we think that more practical and sensible approaches should be considered by landlords and tenants at this time. Here are some suggestions:
1. Communication is key: This unusual situation creates the perfect opportunity for landlords and tenants to work together to minimize pain and both parties to survive. Frequent and forthright communications are essential. Each party should regularly assess and communicate with the other what is happening which might impact their ability to perform under the lease. A thoughtful and practiced SIOR industrial or office broker can play an important role.
Read more via Commercial Observer here.