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Risk ยท July 2025

When Your Landlord Is in Financial Trouble

Office buildings change hands, and some landlords struggle to pay their loans. When that happens, tenants are often the last to hear about it.

Most landlords borrow to buy their buildings. If rent falls short of the loan payment for long enough, the lender may take action. Many lenders prefer to renegotiate, so a building in trouble can keep operating for a long time.

Even so, uncertainty creates risk for your business. Repairs can slow, services can change, and your lease rights may become harder to enforce.

If you suspect trouble, check your lease for notice requirements, estoppel and non-disturbance language, and any rights to offset rent. Get a clear picture of your options before you need them.

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