COVID-19 Is Unlikely To Remove Commercial Rent Obligations
Law360 (May 13, 2020) — The worldwide COVID-19 pandemic has raised tensions surrounding commercial leases as federal, state and local regulations are forcing tenants to temporarily shutter their business or change the way they operate. This landscape is leading toward a growing trend in tenants asking their landlords for concessions on their lease terms including rent and operating covenants.
Some tenants are mistakenly of the belief that this pandemic is a legal excuse to stop paying their rent or even to validly terminate their leases. In the vast majority of cases, this argument is unlikely to succeed and ultimately could cost the tenant unnecessary litigation fees and landlord goodwill.
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