BREAKING: SB 939 Fails To Advance

On May 13, 2020, a bill numbered SB 939 became a lighting-rod in California.  It proposed that certain Covid-impacted tenants could terminate their leases. Authored by Senator Wiener, SB 939 gained momentum when it passed the Judiciary Committee by a vote of 5-1 in favor of the bill.  It then moved to the Appropriations Committee [...]

By | 2020-06-18T21:28:51+00:00 June 18th, 2020|Landlord-Tenant, Leasing|8 Comments

SB 939’s New Controversial Provision: Eviction Protections For Covid-Impacted Tenants In ALL Industries (Not Limited To Restaurants, Etc.)

SB 939 was recently amended to provide additional eviction protections for Covid-impacted tenants in all industries.  To be clear, this provision is not limited to restaurants, bars, places of entertainment, etc.  This updated section of SB 939 provides, in part: 12-Month Repayment Period: “Covid-impacted” tenants have 12 months after the state of emergency ends to [...]

By | 2020-06-02T16:18:54+00:00 June 2nd, 2020|Landlord-Tenant, Leasing|7 Comments

SB 939 Lease Termination Right Narrowed To Restaurants/Bars and Places of Entertainment

On May 13, SB 939 became a lightning rod in California – if passed, it would give certain Covid-impacted tenants a right to terminate their commercial leases.  It initially applied to all California small businesses.  However, SB 939 was just amended and the termination right was narrowed substantially. SB 939's Termination Right Now Applies To [...]

By | 2020-06-02T15:17:24+00:00 June 1st, 2020|Landlord-Tenant, Leasing|2 Comments

SB 939 Update: Key Hurdle Passed; Obstacles Remain

SB 939 provides certain Covid-impacted tenants with the right to terminate their leases if they experience 40% monthly revenue declines (for details on the bill, see California Proposes Lease Termination Right For Covid-Impacted Tenants).  Below is an update on the current status of SB 939. SB 939 Approved By Judiciary Committee By 5-1 Vote: Last [...]

By | 2020-06-01T16:22:00+00:00 May 28th, 2020|Landlord-Tenant, Leasing|7 Comments

California Proposes Lease Termination Right For Covid-Impacted Tenants

Under a proposed California law, certain tenants that experience declines in revenue as a result of Covid-19 can terminate their lease if their landlords do not agree to a rent reduction.  This Senate Bill 939 (SB 939) has been introduced in the California Senate, but has not been enacted.  Does this termination right in SB [...]

By | 2020-06-01T16:23:00+00:00 May 18th, 2020|Landlord-Tenant, Leasing|9 Comments

Can Lessee Pay Rent “Under Protest” in the AIR CRE Leases?

Some tenants are asserting defenses to the obligation to pay rent, particularly where their businesses are closed entirely because of the Covid-19 pandemic.  However, if a tenant does not pay rent, it may lose the ability to exercise an option to extend, it may lose future rent abatement, or there could be other repercussions.  Under [...]

By | 2020-05-18T17:32:32+00:00 April 28th, 2020|Landlord-Tenant, Leasing|0 Comments

AIR CRE Leases Require Business Interruption Insurance. Will it Cover Losses for Coronavirus Closures?

Publisher’s Note: We are experiencing difficult times in California with the Coronavirus. I hope all is well with you and your loved ones, and our best wishes in the recovery of any of your businesses that have been impacted. California businesses have been suffering and many have closed, either by direct mandate of the government [...]

By | 2020-03-21T01:06:01+00:00 March 20th, 2020|Leasing|8 Comments

Is Earthquake Coverage a Pass-Through Expense In AIR Leases?

Southern California recently experienced a magnitude 7.1 earthquake.  Well before the recent quake, our clients have been increasingly considering earthquake coverage for their buildings.  Under the various AIR Leases, if a Lessor obtains earthquake coverage for its building, can it charge this cost to Lessee? Short answer: Sometimes.  In the AIR “Net” leases, it is [...]

By | 2019-07-25T17:25:30+00:00 July 25th, 2019|Leasing|7 Comments

New Single-User Restroom Law – Is Lessee Responsible To Comply?

Effective March 1, 2017, California businesses with a single-user restroom must identify such restrooms with signage as “all-gender” restrooms.  Under the AIR lease, is it Lessee’s responsibility to comply with this new law, and is Lessee responsible for the cost to comply? Yes, according to many Lessors.  Lessors are contending that, pursuant to Paragraph 6.3 [...]

By | 2018-02-19T15:21:56+00:00 February 23rd, 2017|Leasing|2 Comments