Protect Against Tenant’s Bankruptcy

At the time you rent space to a tenant at your shopping center or office building, it may be financially healthy, with no red flags indicating that it will struggle at some point. But that doesn’t mean that a profitable tenant won’t face challenges in the future. Factors from a poor business plan, too-rapid expansion, or competitors moving into the area could send a tenant into a downward spiral—which will directly affect you. It’s important to be prepared for what you’ll need to consider—and what actions you’re allowed to take—in that case.

You’ll find an explanation of the basics of bankruptcy, expert commentary on tenant bankruptcies that you should consider if you’re faced with such a situation, and model language you can use in your leases to protect yourself from the pitfalls of a tenant that ultimately becomes bankrupt, in “10 Ways to Protect Yourself from Tenant Bankruptcies,”  available to subscribers here.

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