LEASE MODIFICATIONS IN THE CLOUD OF COVID-19

Commercial real estate Tenants and Landlords are in the same boat, both want to stay afloat.

Survivors of the last recession remember: lease modification strategies are better than a “fight.” Tenants and Landlords are best served by successful, market-driven resolutions.

A problem-solving approach by two business-minded parties will pay off in times like these, because landlords and tenants reasonably want to preserve their existing business relationships and lease agreements.

Lease extension for stronger tenants? Step-up leases?  Rent deferment?  Rent adjustment?  Discussions with lenders?  What information and approaches deliver the best results?

My clients seek solutions, not a battle.  This month, in the shadow of COVID-19, I am involved in:

1. Lease expansion and extension: 25,000 sf to 45,000 sf new premises.
2. Lease extension: term traded for rent
3. Lease extension: both Tenant and Landlord working to a solution.
4. Lease with right to purchase

“The COVID-19 crisis is affecting tenants and landlords alike. Needs-based asks from tenants are certainly appropriate at this time, with sincere consideration of the landlord’s position. How both parties demonstrate responsiveness, flexibility and partnership will be remembered long after the crisis is past.” K. Ashley, Cushman & Wakefield

My experience and knowledge will guide your business (Landlord or Tenant) through the process as your trusted real estate advisor. Thoughtful and frank discussions are necessary.  Not every tenant is experiencing the same amount – or any – financial distress, therefore there is no “one size fits all” solution.

For a confidential, no-obligations meeting to discuss your challenges as a Landlord or as a Tenant, call:

Dave Schiller SIOR, 716-628-3477

schillerSIOR.com