In the Spotlight: Commercial Tenant Considerations in a Troubled Economy

Recently, this newsletter has published many articles involving lease-related issues that are highlighted by the difficult economy we are presently experiencing. (See Commercial Leasing Law & Strategy, Vol. 22. No. 1, June 2009.) Since we are being inundated on what seems to be a daily basis with potential bankruptcies from very prominent landlords across the country, the article herein addresses certain terms, provisions and concerns that should be covered in a tenant's lease transaction, which will not only be important if the landlord experiences financial difficulties, but will also assist the tenant if it should confront a difficult financial situation on its own account. This article specifically covers the important areas of subordination, non-disturbance and attornment agreements, expanded use clauses, assignment rights, review of financial statements, and termination rights.