Monday, May 11, 2020

Rent Obligations on Retail Space in the Midst of a Pandemic: A Path Forward for Landlords and Tenants

The National Law Review
Business conditions in the wake of the COVID-19 pandemic are deteriorating so rapidly and on so many levels for retailers and shopping center owners in the U.S. that it would be economic suicide for landlords and their tenants to simply retreat to their corners and take intractable positions.

Retail landlords should not be taking an across-the-portfolio “pay your rent or else” response to tenant requests or demands for rent relief, without any regard for asset or tenant-specific conditions or any concern that half the country’s retailers have cash-burn rates that could lead to insolvency within a matter of months in the absence of shared, collective sacrifice by creditors – necessarily including landlords.. . . more