Goldstein: In the case of commercial leases, there would be nothing that would allow a tenant to withdraw from a lease for no reason or for a reason specific to this type of pandemic. In general contracts, we have a so-called force majeure clause, which could be included in a commercial lease. Cohen: In March and April, we certainly saw that tenants` mentalities have changed a bit, but there are still closures. Some tenants – mostly small grocery stores of about 1500 square meters – had the ball in mind and knew the industry was going to go up, so they immediately started negotiations with their landlords. Other more reputable tenants have a higher commitment and risk, so they have usually renegotiated or pulled out completely before signing new leases. Therefore, if a commercial lease contained a state enforcement clause (which I have seen in the past), they could be covered by a case of force majeure. Many leases currently do not have such a clause, but I am sure we will start adding it for the future. Cohen: To add that, we`ve seen what industry experts call a coronavirus clause. It is essentially a mutual agreement between the lessor and the tenant, which allows the beginning of the lease to depend on the phase in which New York is located. For example, we work with a gym that moves to a gym in Midtown. You take a one-year lease, but the lease starts as soon as the gyms are allowed to open under New York rules. Goldstein: So the beginning of the rental is actually TBD – to be defined. Here`s the solution.
Let me know if you need treatment. Feel free to invite me alone in the future. Housing includes warehouses, shopping malls, commercial buildings and offices. Most of the time, the lease is done by occupied area and the contract can be renewed to allow further use of the area. In a commercial lease, there is no protection for the tenant because he believed he had the ability and knowledge to negotiate the contract with the use of professionals (Grinlinton, 2017). In the event that the resident is a unit, the lessor applies to an individual insurance to make the payments if compliance with the contract is neglected.. . . .