Interested in training for your team? Click here to learn more

Commercial Tenant Due Diligence of Landlord Financial Stability: Key Considerations, Lease Terms to Mitigate Risk

Protecting Tenants From Financially Unstable Landlords

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

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Thursday, April 17, 2025

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, March 21, 2025

or call 1-800-926-7926
Add to your calendar

This CLE webinar will examine how to guide tenant clients through conducting due diligence to determine landlord financial stability before entering into or renewing a commercial lease. The panel will also discuss drafting considerations for key lease provisions to protect tenant clients' interests should the landlord experience any financial downturn that impacts their ability to perform their lease obligations.

Description

In a volatile commercial real estate market where interest rates remain high and vacancy rates remain below their pre-pandemic levels, many commercial landlords are experiencing financial difficulties. When entering into a new lease or lease term extensions, commercial tenants take on numerous risks and liabilities that are compounded if a landlord is financially unstable. Tenants' counsel should be able to guide their clients through landlord due diligence and build tenant protections into the lease to mitigate risk for their clients.

Due diligence considerations include assessing landlord financial stability such as determining whether the landlord is in default under any financing secured by the building the tenant will occupy; or whether the building is fully occupied, and the tenants are paying rent to generate sufficient cash flow to fulfill any landlord obligations for building operations/maintenance.

If a landlord is in default or there is concern of future financial instability, the lease should include terms protecting tenant clients against those potential risks.

Listen as our expert panel discusses how to guide commercial tenants through conducting landlord due diligence before entering into or renewing a commercial lease, and how to protect tenant clients against landlord financial instability through key lease provisions.

READ MORE

Outline

  1. Introduction
    1. State of the commercial real estate market
    2. Commercial tenant risks when landlords are financially unstable
  2. Due diligence practices
    1. Landlord financial stability
    2. Operational history
  3. Key lease provisions to protect tenants against current or future landlord financial instability
  4. Practitioner takeaways

Benefits

The panel will review these and other important considerations:

  • Why should tenants conduct due diligence of the landlord's financial stability before entering into or renewing a commercial lease?
  • What key information should be examined during the due diligence process?
  • What provisions should be included in a commercial lease to best protect tenants against current or future landlord financial instability?

Faculty

Zana, Lisa
Lisa M. Zana
Partner
Shipman & Goodwin

Ms. Zana’s commercial real estate clients are situated throughout the U.S. with a focus on New York’s...  |  Read More

Additional faculty
to be announced.
Attend on April 17

Early Discount (through 03/21/25)

Cannot Attend April 17?

Early Discount (through 03/21/25)

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.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video