With the news primarily focusing on residential real estate and home foreclosures, commercial real estate has taken a back burner. But take a look around your town and you'll notice myriad "For Lease" signs on all kinds of commercial real estate, from the smallest strip mall to enormous sky scrapers. Even on the most populous streets and swanky avenues in Pasadena there are many empty storefronts and with huge banners proclaiming available space for lease.
This article on PR Web predicts a serious crisis for owners of commercial real estate, in which "none of the experts agreed to point on a recovery timeline." Only a few years ago, if a commercial tenant broke their lease, the landlord would be irritated, but there was likely another tenant eager to move in. Not so any more. Now, when a tenat leaves, the commercial landlord may want to hold the tenant accountable for breach of the lease and sue for damages.
Unfortunately, times are tough for the tenants as well. This is why mediation may provide a more amicable outcome for both parties. Most of the time, it will be much less expensive than going through litigation. If both sides are willing to mediate, often a resolution can be reached relatively quickly. In these challenging times, it may be beneficial for the commercial landlord to consider working with an attorney who can represent their interests in mediation.
