Tenant Improvement Allowance and Landlord Defaults, guest post by Justin Daniels, Atlanta Real Estate Attorney

by Justin Daniels on 20. Jul, 2009 in real estate law

Your Tenant Improvement Allowance is at risk When a Landlord Defaults

Certain commercial leases allow a tenant to build out space and be reimbursed by the landlord for such buildout. In the current economic climate, however, a landlord may be having financial difficulty or default on its mortgage and be unable to reimburse the tenant for the buildout. This does not, however, relieve the tenant from paying the contractors who performed the buildout work.  As a result, prospective tenant’s should pay attention to landlord’s who are having financial difficulties and also consider performing financial due diligence on the landlord.

Related posts:

  1. Landlord’s Forgetfulness is No Excuse: Tenant Obligated to Pay Lease Expenses – guest post by Justin Daniels, Atlanta Real Estate Attorney
  2. Atlanta Commercial Real Estate: Contractors Cause Lease Issues, guest post by Justin Daniels
  3. Your Sublease Can be a Risky Proposition, guest post by Justin Daniels, Atlanta Real Estate Attorney

  • I'd like to add we're seeing landlords hesitating to pay tenant improvement allowances to tenants due to the number of tenant defaulting on their leases. No landlord wants to shell out a lump sum of cash only to see the tenant vacate a little ways down the road...
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