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Common Issues In Commercial Property Bankruptcies

A review of landlord-tenant bankruptcy issues that should be in the forefront for landlords and tenants in determining rights, obligations and strategies when a bankruptcy involving a commercial property is filed.


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As the commercial real estate market undergoes seismic shifts resulting from the rise of online retailing, the COVID-19 pandemic, the growth in work-from-home options for employees and employers, and the continuing evolution of how we do business as a nation, companies may find themselves in situations where their tenant or their landlord has filed for bankruptcy protection. Questions then quickly arise, such as if and how a landlord may evict a bankrupt tenant, whether a bankrupt tenant may remain as a lessee and continue to occupy the premises, and how to measure damages for a landlord in this situation, both before bankruptcy and going forward post-petition. The Bankruptcy Code and related case law address these points.

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