Lawyers Help Retail Tenants to Work With Landlords

As we move deeper into the economic crisis caused by the pandemic—and as April rent has come due—retail tenants are starting to look for ways to mitigate the impact from the crisis. Real estate attorney Kenneth Fields says his first question to tenants looking for advice is: will you have a viable business in the future? It is the starting point to developing a game plan.

“If I am representing a tenant, I will ask whether my client believes it will have a viable business in the future, because the answer to that question will obviously dictate what my client is willing to do now,” Fields, a partner at Greenberg Glusker, tells GlobeSt.com.

The goal, regardless of the answer to that question, is clear communication between both parties and a collaborative solution. “Ultimately, we are suggesting that parties communicate with one another and try to find a solution that recognizes the interests of both sides,” says Fields. “Clearly, a landlord must understand that a tenant may not be able to pay full—or any—rent while its business is closed, but the tenant should also recognize that its landlord might have its own obligations to lenders and other vendors.”