Much attention has been paid to the impact of the COVID-19
crisis on existing leases; however, the crisis has, and will
continue to affect new lease negotiations, and in particular
certain lease provisions that are uniquely impacted by the
crisis. One provision that is, and will likely continue to be
impacted by the crisis is the build-out provision and the closely
related concepts of lease and rent commencement. Set forth
below is a discussion of (a) the interplay between these two
provisions, (b) the impact of the COVID-19 crisis on the risks
associated with lease build-out provisions, and (c) potential
methods to help mitigate such risks or appropriately allocate the
cost of the same.
