Commercial Leases: Due Diligence Considerations

Best Practices for Landlords and Tenants to Identify and Mitigate Risks

Recording of a 90-minute premium CLE webinar with Q&A

Conducted on Thursday, February 9, 2012

Recorded event now available

or call 1-800-926-7926
Course Materials

This CLE course will provide guidance for real estate counsel on due diligence steps that should be taken before entering or renegotiating commercial leases in the current economic environment. The panel will provide effective approaches to identify and mitigate risks and liabilities.


Landlords and tenants entering commercial leases in the current market must conduct careful due diligence to minimize or avoid unanticipated risks and liabilities. Proper due diligence increases the likelihood that both parties will negotiate a lease agreement that meets their respective needs.

Key areas of focus during due diligence should include the financial standing of the tenant and any guarantors, the financial condition of the landlord, and any exclusive use provisions or other restrictions on the leasable space, among others.

In addition to performing thorough due diligence, counsel for landlords and tenants should take additional steps to mitigate risk, including carefully negotiating representations and warranties clauses and remedies provisions in the lease agreement.

Listen as our panel of real estate attorneys explains critical issues that commercial landlords and tenants should consider in the current market before entering or renegotiating a lease. The panelists will provide best practices for identifying and mitigating risks and liabilities during the due diligence process and when drafting the lease agreement.



  1. Current leasing trends
    1. Lease pricing and incentives
    2. Mid-term concessions
    3. Flexible lease arrangements
  2. Critical areas of focus during due diligence
    1. Financial standing of tenant
    2. Financial condition of landlord
    3. Exclusive use provisions/restrictions in lease
    4. Other areas
  3. Mitigating risk in the lease agreement
    1. Representations and warranties provisions
    2. Remedies provisions
    3. Termination options provisions


The panel will review these and other key questions:

  • What factors help determine the extent and type of due diligence landlords and tenants should undertake prior to entering commercial lease agreements?
  • What are the most critical aspects of due diligence for landlords and tenants when negotiating a new lease or renegotiating an existing lease in the current real estate market?
  • How can counsel leverage information obtained during the due diligence process in lease negotiations?
  • How can representations and warranties provisions be used to protect against unforeseen or overlooked diligence tasks?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Yolanda Rodriguez
Yolanda Rodriguez
General Counsel
O'Neill Properties Group

She is responsible for restructuring leases of multiple office and retail tenants and maximizing recoveries for O'Neill...  |  Read More

David S. Houston
David S. Houston

Pillsbury Winthrop Shaw Pittman

He has almost 20 years of commercial leasing experience with a focus on retail leasing. He has significant experience...  |  Read More

Mario J. Suarez
Mario J. Suarez

Thompson Hine

He has considerable experience in complex commercial real estate transactions, construction, and commercial...  |  Read More

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