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The Four Archetypes of a Defaulting Tenant and How to Handle Them

Every distressed tenant will have a different situation and story to tell. Each will have a different approach to handling its lease obligations. Following is a primer to help the commercial landlord prepare for the default conversation with the tenant by looking at the different potential types of defaulting tenants it may face and advice on how to handle each type.

3 minute read August 01, 2023 at 12:03 AM
By
Theodore Yi, Charles Harper and Adam Falkof
The Four Archetypes of a Defaulting Tenant and How to Handle Them

Commercial real estate landlords depend on the success of their tenants to continue to pay rent and otherwise satisfy their lease obligations. If the tenant's business is struggling, it may have difficulty paying the rent and default may not be far off.

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