Guidance on Commercial Leases During the Pandemic

The COVID-19 pandemic has significantly affected the ability of nonprofit organizations in New York City (and across the United States) to operate in the ordinary course. Governmental restrictions (including orders that non-essential businesses keep their workforces out of the workplace) and a host of changing economic conditions threaten the liquidity and viability of many of those organizations. Among other things, organizations have had to weigh the decision to abandon the premises they lease or to withhold rent due to their landlords. Peter Borock and Salvatore Gogliormella, from the Real Estate Department at Paul, Weiss, highlight certain actions that commercial tenants suffering hardship as a result of the pandemic should consider taking, as well as certain factors they should take into account in doing so. Topics include whether tenants can cancel their leases or pay less rent during the pandemic, what landlords can do if tenants default, and whether tenants can negotiate accommodations with their landlords.

Learning Objectives: Participants will learn what to look for in a commercial lease to determine the best next steps to take during times of economic strain and will learn the ramifications of withholding rent or terminating early as opposed to negotiating revised lease terms with a landlord.

For nonprofit executives, managers and Board members.

Presenters: Salvatore Gogliormella, Esq. and Peter Borock, Esq. of Paul, Weiss, presented for New York Lawyers for Public Interest and Lawyers Alliance for New York

Recorded on: May 7, 2020

FREE