During the pandemic, many businesses have faced multiple challenges, including insolvency leading to the repudiation of a commercial lease. In these circumstances, strapped for cash businesses, which were ineligible for rent relief programs and coronavirus funding, have been left trying to navigate contract and property law. Businesses have at least four choices: (1) dissolve and subsequently deplete assets, (2) repudiate a lease by a tenant and abandon the unit, (3) assigning their property interest in a leased unit to another tenant or assignee, and (4) subleasing to another commercial tenant, that is, subtenant. While the first option is outside of the scope of this blog, we will briefly discuss the last three options.
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