Can Retail Landlords Request Tenants Open Their Doors?

Most retail leases require that retailers remain open for business, but in the time of the coronavirus, lease requirements have entered a gray area. Many COVOD-19 restrictions have put retailers in a compromising position, and while some have found ways to remain open and cope, others have decided to close until the restrictions allow for normal—or at least closer to normal—business operations. So, what rights do landlords have in this decision?

“Tenants whose operations are significantly affected by stringent Covid-19 restrictions will want to reserve the right to stay closed until such restrictions are lifted, even though the shopping center requires them to be open for business,” Gary Glick, a partner at Cox, Castle & Nicholson LLP, tells GlobeSt.com. “However, landlords should be able to request that they open for business if the restrictions are not too onerous. For example, if a restaurant is able to operate for indoor dining at 50% capacity, the landlord should require the restaurant open at that level.”