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In the Spotlight: Beware of Lease Disputes in a Declining Market

By Jack Garson

We have just experienced a rising, perhaps frothy, commercial real estate market for the past half-decade, resulting in ever-increasing rental rates throughout much of the country. More recently, we have suffered increased gas prices that tax the budgets of all retail customers and appear to be reducing sales for many retailers.

An ongoing war, the threat of terrorism, and increases in interest rates all are reducing consumer sentiment and spending. The residential real estate market has already been hit, severely in some markets. Recession may be around the corner. Based on historical patterns, lease disputes rise in difficult economic times, and the parties ' especially tenants ' will even challenge the enforceability of the entire lease itself.

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