Supplying Sensitive Financial Information to Tenant

Q: A tenant’s lease for space at the center I own gives it the option to renew after three years at the same rate plus applicable taxes. To decide whether to exercise the option, the tenant says it needs to know the amount of taxes it’ll be required to pay. I’m wary of sharing financial information with the tenant. Do I have to provide this type of information?

A: If you refuse to supply the tenant with the requested information, you could be violating an implied duty to cooperate with it. If the lease expressly states that you aren’t responsible for furnishing the requested information, you would be allowed to withhold that information. But it sounds like your lease is silent on that issue. Therefore, you should supply the requested information to the tenant, which would allow it to make an informed decision about whether to exercise the renewal option. If you’re worried about sensitive financial information, check with your attorney and/or accountant about the best way to disclose the information that the tenant needs without going overboard and providing too much.