Follow Four Strategies to Mitigate Risks of Holdover
By Alan M. Cohen, Esq.
Most owner lease forms include onerous holdover provisions that, if unmodified, create significant exposure for commercial tenants. A holdover provision typically penalizes a tenant for its failure to vacate the premises in a timely manner at the expiration of the lease. Penalties for holdover generally include payment of increased rent (often at double or triple the rent due during the last month of the lease), and liability for consequential damages the owner suffers as a result of the tenant’s holdover.