Rent Deferral Agreements for Defaulted Commercial Leases: Pre-Negotiation, Risk of Insolvency, Landlord Due Diligence
Recording of a 90-minute premium CLE webinar with Q&A
For landlord and tenant counsel, our panel will discuss factors to consider when negotiating a commercial tenant rent relief agreement. When beginning the process of potential rent relief, landlords will want to consider their cash flow and financing arrangements and whether third party consent is necessary, as well as whether rent relief would affect the landlord's ability to pursue insurance claims or governmental bailout and other relief. Likewise, tenants must work closely with landlords and counsel to structure deals in a way tied to the tenant's current and anticipated financial reality.
Outline
- Rent deferral agreements and rent relief generally
- Landlord concerns
- Tenant written request
- Pre-negotiation agreement
- Landlord cash flow/financial situation
- Tenant concerns
- Security deposit release
- Personal guaranty
- Best practices and tips
Benefits
The panel will review these and other key issues:
- What should be included in a pre-negotiation agreement after a rent relief request is received?
- What data is most useful for a landlord in evaluating the risk of future default or insolvency before agreeing to a deferral?
- When should a tenant consider releasing a security deposit or providing a personal guaranty?
- What is the legal framework the landlord and tenant may be required to negotiate under, such as eviction moratoriums and other COVID-19 related law?
Faculty

Casey Sobhani
Partner
DLA Piper
Mr. Sobhani focuses on real estate transactions, and is the head of the firm's leasing practice in the United... | Read More
Mr. Sobhani focuses on real estate transactions, and is the head of the firm's leasing practice in the United States. He also serves as a co-location head of the firm's real estate group in Los Angeles. With his expertise in commercial leases, Mr. Sobhani is directly responsible for managing and handling the legal work for millions of square feet of commercial office, industrial and retail space across the nation.
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Adrianne K. Zahner
Attorney
DLA Piper
Ms. Zahner engages in a general real estate practice, including the acquisition, disposition and financing of... | Read More
Ms. Zahner engages in a general real estate practice, including the acquisition, disposition and financing of commercial real estate.
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Stacy Ann Osmond
Attorney
DLA Piper
Ms. Osmond concentrates her practice in the areas of joint venture and real estate investment, leasing, real estate... | Read More
Ms. Osmond concentrates her practice in the areas of joint venture and real estate investment, leasing, real estate financing, acquisitions and dispositions, corporate real estate services, the real estate aspects of mergers and acquisitions, development and general real estate.
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