In a two-part Daily Journal series, Manatt Real Estate partners Grace Winters, Anita Famili and Martin Steere, along with associate Alison Weinberg-Fahey discuss how the COVID-19 pandemic is impacting commercial leasing, the potential allocations of risk between landlords and tenants in light of this crisis, and ways the risk burden might be shared by insurance providers and through the pursuit of force majeure claims.
In part one of the series, the authors note the importance for landlords and tenants to work together on collaborative solutions to combat issues that may arise in light of the crisis. “Among the preliminary creative solutions are rent forgiveness, reduction and abatement, and relaxation of operating covenants,” they said.
In part two of the series, the authors highlight the role insured parties can plan in determining “whether additional coverages are available or whether COVID-19-related losses are a covered event.”