Glenn Becker Published in Commercial Leasing Law & Strategy
"Don't Give Rent Relief Without Any Strings Attached"

Glenn Becker's article, "Don't Give Rent Relief Without Any Strings Attached," was published in the February 2009 issue of Commercial Leasing Strategy. In his article, Glenn discusses how due to slumping sales, many retail tenants are asking for rent concessions and in an effort to retain tenants, landlords are agreeing to such requests. He notes, "All too often, however, rent relief and other incentives designed to keep a tenant in place are given without any strings attached, thereby denying the landlord some flexibility should market forces swing back more favorably in the landlord’s direction.”

Glenn continues to explain concepts and language that, from a landlord's perspective, should be included in all rent-relief amendments. He points out, "Any rent-relief document should expressly state that the granted relief automatically terminates and the tenant reverts to paying the full contact rent if the tenant defaults under the lease or the amendment." He further notes that such a concept should not be objectionable to a tenant because the tenant should not be entitled to take advantage of financial breaks unless they are in full compliance with the remaining terms and provisions of the lease. Glenn concludes, "There should be protections built into every rent relief document, not only to protect the landlord's interests, but to provide some freedom and flexibility to the landlord when the relief is no longer warranted and/or when the economic conditions take a favorable turn."