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Lease Considerations: Pandemic Clauses and Rent Suspension

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​An issue that is causing concern, our client summaries the topic.

Pandemic clauses

The pandemic has had a significant impact on the hospitality and leisure sector. Many businesses were unable to trade fully or at all and had to close, which has had a devastating impact on them.

In light of this, tenants are looking for more flexible leases with shorter terms and break options. In addition, tenants are looking to include “pandemic clauses” to provide either a rent reduction or rent suspension in the event of a lockdown or future pandemic.

Landlords are recognising that pandemic clauses are now going to be the new norm but that there is no standard industry wording at this point. Therefore, it’s useful to consider what provisions could be negotiated between the parties.

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