Commercial Lease Question

[JBH9457]

What is the name of your state (only U.S. law)? NJ

I am about to enter into a commercial lease for a retail space. Given the current economic crisis, how can I protect myself if the building owner gets foreclosed? I'm putting a lot of money into leasehold improvements. I suppose it’s just me being cautious and most likely won’t have to worry about it, but...

Is there any language which I should have put into the lease?

Thank you.

 

[LdiJ]

What is the name of your state (only U.S. law)? NJ

I am about to enter into a commercial lease for a retail space. Given the current economic crisis, how can I protect myself if the building owner gets foreclosed? I'm putting a lot of money into leasehold improvements. I suppose it’s just me being cautious and most likely won’t have to worry about it, but...

Is there any language which I should have put into the lease?

Thank you.

I think that you are overworrying the issue. Its commercial space. Its in the best interest of the creditor or anyone who buys the commercial building to keep tenants...plus the law would require them to honor any leases. I have been in multiple situations where the company I worked for has leased commercial space and the building was sold. The only thing that happens is that you start making your rental payments to a new company.

 

[latigo]

What is the name of your state (only U.S. law)? NJ

I am about to enter into a commercial lease for a retail space. Given the current economic crisis, how can I protect myself if the building owner gets foreclosed? I'm putting a lot of money into leasehold improvements. I suppose it’s just me being cautious and most likely won’t have to worry about it, but...

Is there any language which I should have put into the lease?

Thank you.

First, please understand that there is nothing that you and the owner can agree upon that is going to diminish the rights of a foreclosing lien holder.

Secondly, in view of your sizeable financial commitment it is abject foolishness on your part to treat this as a self-help effort.

You want to know how to protect you?

You pay an experienced business law attorney to advise you on the laws regarding fixtures that become appurtenant to the land, to investigate the status of any existing liens, the owners credit history regarding any such liens and negotiate the terms of any future leasehold agreement!!!