News & Analysis as of September 19, 2024

Assignments › Commercial Leases

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An assignment is the transfer of a right or benefit from one party to another party. Assignments can occur in contract or real estate contexts. A contract assignment refers to a situation where one party to a contract transfers his/her rights or benefits under the contract to a third party. In a real estate assignment, an interest holder transfers his/her interest in a particular parcel to another party. less -

Polsinelli Podcasts: Out-of-Court Alternatives to Bankruptcy

Federal Real Estate in a Turbulent Market, Part II

Holland & Knight LLP on 8/15/2024

This is the second of a two-part series addressing special considerations for government lessors in the current commercial real estate market. Part I addressed the risks posed by government downsizing and early lease...more

Importance of Negotiating Assignment and Subletting Provisions in Health Care Leases

Epstein Becker & Green on 4/3/2024

In our ongoing series of blog posts, we examine key negotiating points for tenants in triple net health care leases. We also offer suggestions for certain lease provisions that will protect tenants from overreaching and...more

Michigan Adopts Its Version of the Uniform Assignment of Rents Act

Miller Canfield on 6/28/2022

In May 2017, we highlighted the Sixth Circuit’s opinion in Town Center Flats. Briefly, Town Center Flats held that ownership of a commercial property’s rents transferred to a lender when (1) a commercial loan is secured by a...more

Treatment of Commercial Leases in Tenant Bankruptcy – The Basics

Farella Braun + Martel LLP on 7/13/2020

As the COVID-19 pandemic continues to wreak havoc with the nation’s economy, we have started to see bankruptcy filings by well-known companies such as GNC, J. Crew, Neiman Marcus, Modell’s, 24 Hour Fitness, Gold’s Gym, and...more

District Court Bars Assignment by Sears, Provision in Lease Cannot Supersede §365(b)(3)(A)

Kramer Levin Naftalis & Frankel LLP on 5/6/2020

In an opinion dated Feb. 27, 2020, Judge Colleen McMahon of the United States District Court for the Southern District of New York reversed the decision of the bankruptcy court that had granted Sears the right to assign its...more

What Happens to the Other Tenants when the Anchor Tenant Leaves the Mall?

Jaburg Wilk on 4/30/2020

When a commercial tenant leases space in a shopping center or mall, a primary consideration for the tenant is the expected benefit to their business of the foot traffic from the customers that will be attracted to the other...more

Sears (MOAC v. Transform): Landlord May Rest (Adequately) Assured of ‘Similar’ Financial Condition and Operating Performance, But...

Lowenstein Sandler LLP on 4/3/2020

A recent decision from the United States District Court for the Southern District of New York (the District Court) in the bankruptcy cases of Sears Holdings Corp. may loom large in a day and age when shopping mall operators...more

Sears, Mall of America and a New Look at Shopping Center Lease Protections

Dechert LLP on 3/30/2020

In general, a trustee or debtor in possession may assign a lease if it cures any monetary defaults and provides adequate assurance of future performance by the proposed assignee. If the lease is for space in a shopping...more

Permitted Transferees: What a Commercial Tenant Needs to Know When Negotiating the Assignment Clause

Farrell Fritz, P.C. on 2/27/2020

What is the Assignment Clause and When is it Triggered? Every commercial lease contains an assignment provision that lays out the landlord’s and the tenant’s rights and obligations in the event that the tenant seeks to...more

“Right-Sizing” Hong Kong Commercial Leases: Key Issues to Consider in the Context of Business Disruption & COVID-19

BCLP on 2/14/2020

Business disruption seems to have become the new norm in Hong Kong in the last 12 months or so. The first quarter of 2019 was dominated by news of a regional slowdown caused by the US/China Trade War. The second half of the...more

Commercial Tenants Can Assign Right to Just Compensation

Nossaman LLP on 10/31/2019

In an eminent domain proceeding, tenants of property subject to condemnation have constitutional rights to just compensation. However, those rights can be assigned to the landlord through a lease agreement. A recent...more

Foreclosure Against a Commercial Landlord: Impact on Lease Rights

Patton Sullivan Brodehl LLP on 10/28/2019

Foreclosure can often have tricky impacts on lease rights... See Eviction After Foreclosure: California Supreme Court Weighs In and When a Lender Forecloses on a Leasehold Interest…. An opinion recently published by...more

Not Caring about (Profit) Sharing: Third Circuit Invalidates Profit-Sharing Clause on Anti-Assignment Grounds

Dechert LLP on 1/23/2019

Can a profit-sharing provision in a commercial lease survive assumption and assignment by a debtor? Analyzing such a provision, the Third Circuit answered “no,” finding the provision to constitute an unenforceable...more

Court Of Appeal Finds No Property Transfer In Reverse Triangular Merger

Allen Matkins on 9/26/2018

Five years ago, I commented on the dearth of authority on whether a reverse triangular merger constitutes an assignment...more

Got Privity? Understanding Privity Of Estate And Privity Of Contract In California Real Property Leases

Miller Starr Regalia on 7/17/2018

Parties to real estate contracts often change over time, whether as the result of an assignment, financing, or otherwise. Relatedly, additional parties (beyond those named in the underlying contract) may claim a property...more

License vs. Lease: Legal Concerns of Co-Working Spaces

Miles & Stockbridge P.C. on 7/13/2017

Co-working space offers the amenities of a large sophisticated office to companies of varying size without the hassle of dealing with buying furniture, securing utility hookups, or buying coffee. The upside to spaces...more

EMI and Frankenstein: Not dead yet

Hogan Lovells on 7/3/2017

Last year, we blogged here on the case of EMI Group Limited v O&H Q1 Limited. EMI was a case in which an assignment of a lease was rendered void, as it offended the provisions of the Landlord and Tenant (Covenants) Act 1995...more

Franchisors Should Consider Signing a Conditional Lease Assignment Rather Than a Franchisee’s Lease

Snell & Wilmer on 11/10/2016

In Franchise & High Properties, LLC v. Happy’s Franchise, LLC, a 2015 decision issued by the Court of Appeals in Michigan, the franchisor, Happy’s Pizza Franchise, LLC, signed a five-year lease for the commercial space to be...more

Landlords Must Not be Arbitrary When Denying a Tenant’s Request To Sublease or Assign

Snell & Wilmer on 7/11/2016

So, you’re a landlord who’s entered into a 30-year lease, the lease has rent escalation clauses which are dramatically out of step with the market, and it’s your view that you are therefore losing money every month. The...more

What General Counsel Should Know When a Company's Tenant Files for Bankruptcy

Bradley Arant Boult Cummings LLP on 7/31/2015

Your tenant files for bankruptcy-what’s your move? Debtors who are lessees under real property leases have certain rights regarding their lease under § 365 of the Bankruptcy Code. Essentially, the debtor has two options: 1)...more

Considerations and Consequences of a Bankruptcy Filing in the Oil and Gas Industry

Jackson Walker on 5/15/2015

A Chapter 11 bankruptcy filing of an oil and gas company will likely have broad implications for a wide range of parties. Certain pervasive agreements in today’s oil and gas industry generate substantial, high-dollar...more

Navigating Commercial Lease Assignment Provisions: Tenants Beware

Troutman Pepper on 4/23/2013

Landlords use lease assignment provisions to maintain control over the quality, composition, and financial capability of their tenants. However, assignment provisions can have a chilling effect on a corporate tenant’s...more

Summary Of HUD’s New Draft LEAN Loan Documents, December 21, 2012

Troutman Pepper on 1/5/2013

On September 7, 2012, the Federal Housing Administration (FHA) published new regulations for the Section 232 Healthcare Facility Insurance Program in the Federal Register. FHA had previously proposed new regulations and loan...more

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Assignments › Commercial Leases

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