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Vacation and Abandonment of Industrial Premises
The recent economic crisis has caused a number of tenants to vacate or abandon industrial space. In fact, the problem is so bad that it has been reported that the Obama administration is considering a proposal to raze entire industrial districts and return the land to nature. Tenants vacating or abandoning their leased space can create a number of problems for industrial landlords. To prevent these problems, it is imperative that all landlords include in their leases provisions prohibiting tenants from vacating or abandoning their leased space. Each such instance should be deemed to be an event of default.
The problems such clauses seek to prevent is the first focus of this article. A series of recommendations are then offered for industrial landlords to protect their properties and their bottom lines.
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