Publication

Questions Regarding Rent Relief for Commercial Tenants Affected by COVID‑19

Below, in question and answer form, is a discussion of the availability of rent relief for commercial tenants affected by COVID-19.


My lease contains a force majeure clause. If I can’t use my space because of a government-mandated prohibition of occupancy, does that clause give me the right to suspend rent payments?

Almost certainly no, because:

  • Under many leases, the force majeure clause only runs to the benefit of the landlord.
  • In those leases in which the force majeure clause is reciprocal, the obligation to pay rent is often excluded.
  • Depending upon the exact wording of your force majeure clause, the COVID-19 crisis might not even be considered force majeure.
  • In the strict legal sense, COVID-19 may prevent you from occupying your premises, but it does not prevent you from paying rent. If you have the money, nothing is preventing you from making payment. Force majeure clauses do not cover financial hardship.

On the other hand, a properly worded force majeure clause will excuse a tenant from performing a covenant of continuous operation or other obligation whose actual performance is made illegal or impossible by COVID-19.

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