The COVID-19 pandemic has put a lot of aspects of commercial real estate under the spotlight. That includes how force majeure clauses are drafted in leases and purchase and sale agreements.
Before 2020, definitions of force majeure didn't include pandemics. But that is changing. In fact, the provision was something people didn't give a lot of thought to before the pandemic, according to Kevin Sher, a partner with Greenberg Glusker.
"In terms of force majeure, specifically, there had always been a boilerplate provision at the back of a lease and not really thought much about. Or sometimes it was not included at all until this [the pandemic] came about," Sher says.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
