Bass, Berry & Sims attorney Mike Stewart’s insights were included in a report from the NAIOP Research Foundation on a recent survey addressing how tenants and landlords are working together in response to the COVID-19 pandemic and subsequent economic downturn.
Many tenants have requested the chance to defer rent and pay it back over a six- to 18-month period determined based on the lease’s remaining term. For owners willing to oblige this request, Mike suggested that they document deferments in a lease modification or forbearance agreement, but include language that makes any deferred rent and associated landlord costs payable upon any default.
The full article, “Working Together as a Team: Negotiating with Tenants and Leasing Space During COVID-19,” was published by NAIOP Research on August 10 and is available online. Mike wrote about this topic in fuller detail in the article, “Five Issues Landlords Should Consider Regarding a Pandemic’s Impact on Commercial Tenants,” that was published in the Summer 2020 issue of NAIOP’s Development Magazine.