Commercial Leases Most Impacted by COVID-19

Non-residential or commercial property refers to real estate used for business purposes such as office buildings, retail stores, industrial warehouses, and other commercial establishments. Unlike residential property, commercial properties are leased out for business operations, not residential living.

Individuals interested in non-residential or commercial property are typically business owners, investors, landlords, and tenants looking to establish or expand their business operations. They often seek commercial leases to secure space for their businesses and negotiate terms that suit their specific needs.

The impact of COVID-19 on commercial leases has been significant, with many businesses facing challenges in meeting lease obligations due to lockdowns, reduced foot traffic, and economic uncertainties. Different states have implemented various regulations and relief measures to address the issues faced by commercial tenants and landlords during the pandemic.

For example, in California, the state government issued an executive order to protect commercial tenants from eviction for non-payment of rent due to COVID-19-related impacts. Landlords were required to provide notice and allow tenants to repay past due rent over a specified period.

In New York, the Emergency Rent Relief Act provided financial assistance to small businesses affected by the pandemic, helping them meet their lease obligations and avoid eviction.

To navigate the challenges posed by COVID-19 on commercial leases, businesses should review their lease agreements, communicate with landlords about rental adjustments or deferments, and explore available relief programs offered by state authorities.

Understanding the nuances of commercial leases in different states is crucial for businesses to adapt to the changing landscape and protect their interests during these unprecedented times.