Navigating Tenant Bankruptcy: Key Strategies for Commercial Landlords in Retail Real Estate
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Navigating Tenant Bankruptcy: Key Strategies for Commercial Landlords in Retail Real Estate
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In this episode, AGG Real Estate Litigation co-chair Knox Withers is joined by Bankruptcy, Creditors’ Rights, & Financial Restructuring partner Sean Kulka to discuss how tenant bankruptcy can disrupt commercial properties and impact landlord rights overnight. Through real-world scenarios involving retail tenants, restaurants, office users, and below-market leases, Knox and Sean examine what happens when a tenant files Chapter 7 or Chapter 11, how the automatic stay limits landlord actions, and why timing and strategy are critical to preserving leverage and protecting asset value.
Knox and Sean cover post-petition and stub rent, lease assumption and assignment, guarantor liability, co-tenancy risks, abandoned property issues, and the practical realities landlords face when trying to regain control of a space.