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In 2019, contravening well-settled Texas law, the Texas Supreme Court held that a commercial tenant may terminate a lease based on a landlord’s prior material breach of the lease. Rohrmoos Venture v. UTSW DVA Healthcare, LLP, 578 S.W.3d 469 (Tex. 2019). Specifically, Rohrmoos held that a commercial landlord’s material breach — at least one that might also qualify as a breach of the implied warranty of suitability — justifies a tenant’s recission of the lease. (The record is not wholly clear, but it appears the material breach was moisture penetration at the tenant’s dialysis clinic resulting in state health inspectors’ “critici[sm]” of the facility. 578 S.W.3d at 475-76. The tenant in this case had built the stand alone clinic.) 578 S.W.3d at 482-83. The Rohrmoos decision effected a seismic shift in Texas landlord-tenant law that this article briefly explores. This article focuses on Rohrmoos’ — apparent — collapsing of the distinction between the implied warranty of suitability in a commercial lease and a material breach of lease and offers insight into what both transactional and litigation lawyers should consider in evaluating commercial leases post-Rohrmoos.
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Second Circuit Likely to Deliver Big Win for Commercial Shopping Center Lessor
By Michael L. Cook
The U.S. Court of Appeals for the Second Circuit, on remand from the Supreme Court, further remanded to the district court the key issue of whether the Chapter 11 debtor gave “adequate assurance of future performance of” a commercial real property shopping center lease “as required by the Bankruptcy Code after the debtor’s assignment of its lease.
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While transforming existing buildings for alternative purposes is not a new concept, this article seeks to explore the feasibility of alternative repurposing options with a focus on pre-existing office buildings; namely, converting vacant office space into vertical farms or cannabis growth operations.
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By Richard Berger
Considerations for severe weather and climate, in general, have real estate developers putting more focus on how they build and operate. But add to that rising insurance rates, which have dealt a big blow to budgets as premiums continue to climb.
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