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Trouble in Lease Land

When financial problems affect the ability of a retail landlord or tenant to perform its lease obligations, both parties can be mutually benefited by working out a solution that keeps the tenant operating and paying rent.

10 minute readJuly 28, 2009 at 11:25 AM
By
M. Rosie Rees
Trouble in Lease Land

Parts One and Two of this article discussed a variety of methods to keep the tenant operating. The conclusion herein addresses lender issues and tax considerations.

Lender Issues

Once the landlord has decided to modify a lease for a troubled tenant or a troubled center, it must first check its loan documents. The landlord may find that certain concessions it wants to give are not permitted under the loan documents without the lender's consent.

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