Pandemic Lease Modifications: Addressing Legislative Developments

With COVID-19 raging and many businesses, large and small, seeking to manage their overhead and obligations, commercial landlords and tenants are examining their leases for potential modifications that would enable them to preserve their cash flow in the short-term without damaging each other's long-term prospects. The effects of the pandemic continue to be felt, and the legislative process is beginning to address some of the commercial repercussions brought on by the rapid onset of this public health crisis.

As the parties reach accommodations and document their arrangements, commercial landlords should consider what provisions to include in these documents to address legislative developments that have occurred and perhaps anticipate legislative developments that may occur in the future.