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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]