How to Structure a Lease to Protect Against the Risk of a Bankruptcy of the Tenant

  • October 3, 2001
  • • Written by: Susan Fowler McNally Carter H. Klein Michael S. Abrams

Fall 2001, Vol 26, No 3

Abstract: The volatility of the financial status of many tenants has compelled landlords entering into office leases with these tenants to accept far greater risks than they are accustomed to. This article discusses how landlords can reduce the risks involved in leasing space to tenants with negligible net worth, no significant tangible assets, and/or operating histories that can be measured in weeks.