Ted Yi, Charles Harper and Adam Falkof Write Article for GlobeSt.com About Four Types of Defaulting Commercial Real Estate Tenants
A trio of Quarles & Brady Chicago partners – Ted Yi, Charles Harper and Adam Falkof – wrote an article for GlobeSt.com about the four most common types of defaulting tenants and how commercial real estate landlords should deal with each type.
As a preliminary matter, the landlord needs to know its lease and landlord’s rights and remedies under the lease as well as at law. The landlord should get its legal advisor involved early and keep its legal advisor aware of potential lease defaults. As time passes, options and remedies may close.
But ultimately every distressed tenant will have a different situation and story to tell. Each will have a different approach to handling its lease obligations.
Handling defaulting tenants is time consuming and can be stressful, but a thoughtful strategy tailored to the type of distressed tenant helps in leading to the best outcomes.