Thomas J. Gallagher and Dennis L. Cohen discuss the intricacies of section 467 lease agreements and the surprising and unexpected consequences.
Rare is the lease in which the beginning, middle, and end follow the agreed-upon terms without variation. For a host of reasons, leases are shortened and lengthened, rent is reduced and increased, premises shrink and grow, and obligations increase and decrease. At Cozen O’Connor, our multidisciplinary approach to these issues helps clients navigate the legal, business, and practical side of lease restructuring. Whether such restructuring is a result of cataclysmic world events such as 9/11, the Great Recession, or the COVID-19 crisis, or the result of industry sector distress, over-expansion, or idiosyncratic strategic changes, Cozen O’Connor’s Real Estate Lease Restructuring Practice has the tools and resources to effectively guide clients through the restructuring process. Our Lease Restructuring Practice draws upon both our deep bench of real estate attorneys as well as bankruptcy, tax, litigation, environmental, and health care law professionals to assist in the vast breadth of issues that may arise when a lease requires restructuring.
Our lease restructuring capabilities cover all forms of leasehold obligations, including rent reduction, lease renewal, assignment/sublease, premises contraction and expansion, and lease termination. In addition, our breadth of practice spans multiple asset classes, including retail, office, industrial, warehousing, hotel, multifamily, and student housing, among others. We guide our clients through all stages of lease restructuring negotiation. We handle everything from restructuring occurring in the regular course of business, to renegotiation in the event of distress, to bankruptcies and workouts.
The Real Estate Lease Restructuring Practice is a unique and integral part of Cozen O’Connor’s full-service Real Estate Practice and exemplifies our multidisciplinary approach to the practice of law.