Landlords and tenants have been significantly impacted by government-mandated closures of non-essential businesses in response to the COVID-19 pandemic.
While force majeure provisions have been a hot topic since the onset of the pandemic, within the real estate context, we wanted to examine the relative differences between landlords and tenants with regards to the availability of force majeure relief.
We were able to leverage Kira to review and analyze 75 North American leases (25 each of retail, industrial, and commercial leases) in less than a day, using Kira’s built-in smart fields.
In addition to force majeure relief, we also examined:
- Covenants of quiet enjoyment within leases (to survey whether they may be broadly construed to guarantee access to the leased premises);
- The relative prevalence of clauses specifically obligating tenants to operate at the leased premises, and;
- Whether such covenants included any carve-outs for events of force majeure.
As always, all parties should investigate their specific lease terms to fully understand the scope of their obligations and potential exposure. Download our study today to learn more about the implications of our findings as well as how to fully understand the scope of your (or your clients’) obligations and areas of exposure.