Lease Considerations In The M&A Context

In the wake of a series of announcements regarding the closure of the operations of several Canadian retailers as well as the withdrawal of US retailers from the Canadian market, questions are being asked regarding the potential impact on the landlords of the numerous store locations affected. This is not surprising given that a retailer's entry into or expansion strategy within Canada routinely involves the assumption of various existing leases. The consequences of the recent closure announcements will, no doubt, be felt across the Canadian commercial real estate market and retail scene for years to come, as landlords scramble to fill vacant sites, in some cases representing very large footprints. Further, in instances where a departing retailer was the anchor tenant, the closure of operations may also impact the traffic flow to other retailers in the same shopping centres. The negative financial impact on landlords, however, may not be the same across the board: some