Tenant Rights in Commercial Retail Space

[JBH9457]

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

About to enter into a commercial lease to occupy a retail space for use as a restaurant. How can I protect myself from being evicted if the landlord stops paying his mortgage on the building and the entire building goes into foreclosure?

Thank you

 

[You Are Guilty]

Buy the building yourself?

 

[FarmerJ]

There is not a single thing you can do to prevent any landlord let alone a commercial property LL from defaulting IF they have a mortgage. But logic says if the LL defaults and lets it go to foreclosure fair odds are that a forclosing lender would be more than happy to have a tenant , why because we all know how easily empty buildings get vandalized for the copper and since it was already suggested to buy , if you cannot buy now then Id say to think of dedicating a percentage of your income from the business to go to a acct to buy the place should the chance come up.

 

[JBH9457]

Thank you.

I also did not mention (not sure if this matters), that the building also houses eight residential apartments and two other retail spaces.

Am I to believe that there is no language I can have put into the lease which protects me? Realizing the foreclosure process takes quite a long time and I understand that even in the event the bank would much rather have a tenant than an empty space, who's to say that should the building go into auction or even if a short sale is performed that a new owner will not honor the existing lease?

I apologize for my ignorance and probably just over thinking this.

Thanks again.

 

[FarmerJ]

If there is any part of the lease you do not understand then try the links above to get help reviewing it ( make sure the lease has no wording that allows for a new owner to terminate with out cause and long advance notice of renewal or non renwal. ) Seeking legal counsel can give you alot more suggestions as to what would protect your interest best.

 

[You Are Guilty]

Am I to believe that there is no language I can have put into the lease which protects me? Realizing the foreclosure process takes quite a long time and I understand that even in the event the bank would much rather have a tenant than an empty space, who's to say that should the building go into auction or even if a short sale is performed that a new owner will not honor the existing lease?

Well now, this is a totally different question. Before we delve into it, what, precisely, is it you want protection from?

If it's from potentially having to relocate your business in the event of a foreclosure, then your option was already mentioned. On the other hand, if you are concerned, for example, of paying rent to your LL even though he may no longer own the property, that can be addressed in the lease.