Structuring Office Leases in the Economic Recovery: Increased Work From Home, Office Sharing

Negotiating Standstill Agreements, Abatements, Deferrals, Subleases and Assignments

A live 90-minute premium CLE video webinar with interactive Q&A


Thursday, February 3, 2022

1:00pm-2:30pm EST, 10:00am-11:30am PST

Early Registration Discount Deadline, Friday, January 14, 2022

or call 1-800-926-7926

This CLE webinar will provide practical guidance to leasing attorneys facing requests to renegotiate a commercial lease during this economic recovery and the active work-from-home environment. Counsel for landlords and tenants will be provided solutions that range from contractual-based solutions creating abatements or deferrals, common law solutions that focus on doctrines that offer (or limit) early termination, and contextual solutions that look at the landlord's and tenant's financial situations--both currently and prospectively--and attempts to creatively meet all stakeholders' needs.

Description

The increased transition to work-from-home has led to renewed renegotiations of office leases. Companies large and small face concerns as to obligations under their commercial leases. There are several potential solutions for both landlords and tenants.

Some businesses may consider whether office sharing or hoteling is the solution to reducing their footprint in office space. Still, co-tenants have to consider an agreement that addresses the ownership of assets and repairs of the leased property.

The parties must determine whether a proper contractual resolution is possible. Tenants positioned for a true resurgence may want to look at abatements or deferrals. Tenants subject to a true contraction may consider subleasing or assigning portions of the space or term of the lease to a new tenant.

Outside of contract, there are common law solutions if either party identifies grounds to pursue (or defend) a claim regarding the doctrines of impossibility, impracticality of purpose, or frustration of purpose.

Finally, the stakeholders must consider the context of the overarching situation when attempting negotiations. What is the current occupancy level of the retail development, and how will that impact negotiations? What is the financial condition of the tenant? Is bankruptcy more or less a certainty such that a deferral is simply moving a few months down the calendar?

Parties might also consider the possibility that standstill agreements may pause rent collection and lease negotiations until a future date when the economy is more stable.

Tenants negotiating new leases should consider language that will address rent relief if and when there is another pandemic or other health emergency that results in closures or reduced business hours or restricted occupancies.

Listen as our expert panel discusses the possibilities to negotiate and resolve lease issues landlords and tenants face in light of the current economic trends and addresses the contractual, common law, and contextual issues that come into play when trying to meet each parties' needs.

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Outline

  1. Overview of current economic status and state of commercial leased real estate
  2. Contract law solutions
    1. Abatement
      1. Partial
      2. Total
    2. Deferrals
    3. Subleases
    4. Assignments
  3. Common law solutions
    1. Doctrine of impossibility
    2. The doctrine of impracticality of purpose
    3. The doctrine of frustration of purpose
  4. Contextual solutions
  5. Standstill agreements
  6. Insurance

Benefits

The panel will review these and other relevant topics:

  • When should a landlord consider a contractual solution for a defaulting tenant? Which contract solutions work best in each economic situation?
  • How does common law impact a tenant's ability to terminate early, and what grounds can landlords use to dispute such terminations?
  • For developing a tailored solution, what is the global context--unleased space in a complex, access to temporary funding, signs of an economic upswing, etc.-- for developing a tailored solution?
  • When should standstill agreements be utilized, and what are the risks?
  • How to address emergency governmental financial grants or loans

Faculty

Garfield, Ronald
Ronald (Ron) Garfield

Managing Shareholder
Garfield & Hecht

Mr. Garfield has represented landlords and tenants alike in negotiating retail, office and residential leases. He has...  |  Read More

Additional faculty
to be announced.
Attend on February 3

Early Discount (through 01/14/22)

Cannot Attend February 3?

Early Discount (through 01/14/22)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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