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New considerations for commercial leases for a changing world

| Oct 27, 2020 | Landlord/Tenant |

Everyone has had to make adjustments to the way they live, work and do business in recent months whether they live here in California or elsewhere. The truth of the matter is that some aspects of life may never be the same, and many people are having to take current events into consideration as they move forward. For instance, the changes in the world may require new considerations in commercial leases that have not been an issue in the past.

The definition of “access” may need some negotiation in order to be fair to both parties. Voluntarily deciding not to use a space should not necessarily qualify for rent abatement. However, if the government issues orders such as those that happened earlier this year, the question of whether the tenant remains responsible for the rent will most likely require some negotiation.

During these times, property owners may be attempting to keep their properties open for business, secure and clean. The question of whether this fulfills their duty to their tenants may rely on other information and circumstances with an uncertain future ahead. In addition, the term “damage” may need some tweaking considering that some businesses have had to close due to contamination until the premises are certified as being decontaminated.

As is the case with many things in today’s world, property owners and commercial tenants may need to change, adjust or modify some of the language in their commercial leases. Both parties will want to gain the best possible protections from issues arising from current events, and that will probably take some additional negotiation, time and compromise. Working with a California commercial real estate attorney could help ensure that a party’s rights and interests are as protected as possible.