Office Lease Bailout Advice from Real Estate Lawyer Helen Sedwick, Esq.

These are extremely difficult, confusing and opportunistic times for commercial office tenants. As the economy has turned virtually every industry upside down, the office leasing markets have followed…and will continue to trend downward for the foreseeable future. Office tenants suffering from exposure to now-unaffordable office lease payments must act soon…and in a carefully planned, methodical way. Whether considering subleasing or assigning your lease; or worse, filing for bankruptcy…surround yourselves with the appropriate experts to address your situation. Following are two essential articles addressing these critical issues from sage real estate counsel, Helen Sedwick, Esq.:

Negotiating Lease Workouts on the Edge of Bankruptcy [pdf]

First the rent comes in a day late and a dollar short. Then come the frantic calls from the CFO or CEO asking to talk. Then rent payments stop altogether. Undoubtedly a wave, if not a tsunami, of tenant defaults and bankruptcies is heading our way. Since both the Federal bankruptcy code and case law have evolved since the tenant defaults of 2001–2003, I wanted to lay out a brief bankruptcy law refresher for landlords and tenants. Plus, this article will suggest strategies for negotiating a lease workout or termination without a bankruptcy filing. A negotiated settlement is often a simpler and more efficient course. Why is today different from the last downturn? Read on…

Subleasing Issues for Sublandlords and Subtenants [pdf]

The sudden collapse of prestigious firms such as Heller Ehrman and Lehman Brothers, plus the disappearance of financial giants such as Merrill Lynch, Wachovia and Washington Mutual, will flood the office market with hundreds of thousands of square feet of subleasing space. If your firm is considering entering into the subleasing market whether as a Sublandlord or as a Subtenant, then consider the following: Read on…

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