Commercial Landlord’s Guide to Letters of Credit
In virtually every commercial lease negotiation, landlords look for credit support to backstop a tenant’s obligations. Whether it is unpaid rent, repair obligations, or damages caused by tenant default, landlords want to ensure there is a readily accessible source of...
Letters of Credit vs. Security Deposits in Commercial Real Estate Leases
In commercial real estate transactions, landlords often require tenants to provide financial security to safeguard against potential defaults on lease obligations. The two most common forms of security are letters of credit and security deposits. While both serve...
Lease Guaranties: Understanding Their Role and Key Considerations in Commercial Real Estate Leases
A lease guaranty involves a third party, known as the guarantor, committing to fulfill the tenant's obligations under the lease if the tenant defaults. Guaranties help provide credit support for tenants that may not otherwise have the financial wherewithal on...