Commercial real estate landlords and tenants are faced with difficult decisions as they adapt to the effects of the response to the Global Coronavirus (COVID-19) pandemic. In reaction to health directives and guidelines issued by the Centers for Disease Control (CDC) and other health authorities, various state and local governments have taken actions to mitigate the spread of COVID-19, including issuing stay at home orders and forcing closures of non-essential businesses.
Business owners and operators and property managers should always fully comply with governmental orders and health guidelines, review any and all relevant agreements, and consider the possible legal ramifications of any potential course of action. The specific terms of an agreement will generally govern the obligations and responsibilities of commercial landlords and tenants when assessing the impact that the response to the COVID-19 outbreak may have on either party’s ability to perform.
