By Esther Fung | The Wall Street Journal
Retail landlords are including pandemic language in new leases, a previously rare feature as tenants seek protection after the first government-mandated coronavirus shutdowns in March complicated their negotiations for rent relief.
Because many insurance policies didn’t cover pandemic-related losses, landlords have offered various concessions to attract and retain tenants, including allowing them to defer part of their rent if another shutdown is ordered. Both sides get breathing room: Tenants are able to lower expenses while landlords are still able to collect some money for overhead and their mortgage.
“There’s no question that landlords and tenants must work together to find ways to allocate and share risk in the current, uncertain environment. We strongly recommend that parties have counsel review any proposed changes to their commercial lease and then put any changes or amendments in writing.”
– Cameron Carter, Rose Law Group Partner and Transactional Dept. Director