Real Estate Strategies for Tomorrow's Workplace: A Roundtable DiscussionJune 8, 2020 – Article
Greenberg Glusker Real Estate Partner, Steve Lurie, shares real estate insights in the Los Angeles Business Journal roundtable discussion, "Real Estate Strategies for Tomorrow's Workplace," published on June 8, 2020.
QUESTION: What are the options available to tenants for renegotiating their existing leases?
LURIE: While force majeure clauses and governmental legislation may allow tenants to delay performance, the legal position for termination or renegotiation of their leases is often tenuous. Therefore, it is usually important for tenants to try to identify a “win-win” proposition for landlords. This may take the form of a lease extension, a credit enhancement such as a guaranty, or for a shopping center tenant, comfort regarding the tenant’s continued operations. That said, if California Senate Bill 939 becomes law in the form approved on May 22, 2020 by the Senate Judiciary Committee, leverage in lease renegotiations for restaurants, bars and entertainment venues that meet specified financial criteria will dramatically shift, and the threat of a “lose-lose” proposition from lease termination will likely take precedence over finding a “win-win” scenario.
For additional information on this topic, join Steve during the live webinar, "Real Estate Strategies for Tomorrow’s Workspace," at 2:00 p.m., Wednesday, June 10, 2020. Register here >>