CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Lease Provisions to be Aware of Amid COVID-19

Barrie Scardina • 4/10/2020

Lease provisions for landlords (image)

As the pandemic, COVID-19, affects economic and legislative activity and government intervention persists, landlords and tenants are facing unprecedented challenges. Due to the virus’ impact, tenants may struggle to occupy space and pay rent in the upcoming months. We would like to make you aware of a few clauses that tenants may explore as possible options to withhold rent, seek abatement or terminate their lease.

We believe landlords should consider keeping meticulous records of any issues related to COVID-19 including complete or partial loss of use for tenants (noting dates, duration and cause of closure) and actual or potential exposure to COVID-19 within the building (stating cause of closure, dates of discovery, notice and closure and any remedial actions taken). Such documentation may prove helpful during discussions with tenants, and in connection with any filing of insurance or legal claims.

As tenants begin to explore the possibility of relief under their lease, you should consult with your legal and risk advisors to assess if the current lease contains provisions that may delay or excuse performance and/or payment such as force majeure, interruption of service or denial of access. In addition to rights under the lease, a tenant will most likely review their insurance policy to explore what coverages might apply.

As always, we are here to work with and for you. While negotiated rent concessions are surely on the minds of tenants, it is important to note that landlords who carry debt service on their buildings would likely need to review the terms of their loan documents, and potentially engage in conversations with their lenders. Finally, we are carefully considering the necessary shape and scope of lease terms for new deals in a post COVID-19 world. 

As we navigate through this period of uncertainty, please know that we at Cushman & Wakefield remain steadfast and ready to help you however we can. We will overcome this challenge together.

Related Insights

global policy (image)
Article

Global Policy Report

It is clear now that what was originally a supply-side shock—and to a lesser extent an export demand shock for the global economy—has morphed into something far more pernicious.
Kevin Thorpe • 4/2/2020
Covid-19 lease update (image)
Article

Lease Provisions to Explore Amid COVID-19

Many of you are wondering if and how your financial obligations under your leases might be alleviated, either by the lease language itself or through your insurance policies.
Ken Ashley • 4/1/2020
Card (image)
Article

10 Considerations When Approaching Lease Renegotiation & Rent Reduction

Cushman & Wakefield’s leasing and CRE account professionals encourage tenants to consider the following in preparation for lease renegotiations and rent relief requests.
3/31/2020

Cushman & Wakefield utilise des cookies pour analyser le trafic et offrir sur ce site internet une meilleure expérience à nos clients. Fermez ce dialogue pour confirmer votre accord ou rendez-vous sur cette page pour en savoir plus:
Cookie Notice

MORE OPTIONS
Acceptez et fermez
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS