Sunday, August 14, 2022
Google search engine
HomeReal EstateIndustrial Property Leases in Chapter: Widespread Landlord and Tenant Points

Industrial Property Leases in Chapter: Widespread Landlord and Tenant Points

Because the industrial actual property market undergoes seismic shifts ensuing from the rise of on-line retailing, the COVID-19 pandemic, the expansion in work-from-home choices for workers and employers, and the persevering with evolution of how we do enterprise as a nation, firms could discover themselves in conditions the place their tenant or their landlord has filed for chapter safety. Questions then shortly come up, similar to if and the way a landlord could evict a bankrupt tenant, whether or not a bankrupt tenant could stay as a lessee and proceed to occupy the premises, and the right way to measure damages for a landlord on this state of affairs, each earlier than chapter and going ahead post-petition. The Chapter Code and associated case regulation handle these factors. 

Underneath the Chapter Code, a debtor has the correct to elect to imagine or reject executory contracts, similar to unexpired leases for actual property. 11 U.S.C. §365. A debtor with operations in a number of areas could, if accepted by the Chapter Courtroom, assume leases for areas the place the lease is reasonably priced (within the case of a tenant debtor) or worthwhile (within the case of a landlord debtor), and the place it makes enterprise sense to proceed the lease. The debtor could reject leases for these areas the place that’s not the case. 

Industrial Tenant Bankruptcies

Contents

Read Also:   Donald Trump, Don Jr. and Ivanka should TESTIFY below oath
RELATED ARTICLES
- Advertisment -
Google search engine

Most Popular

Recent Comments