As WeWork continues to be covered as an example of how the commercial real estate industry is experiencing difficulties, it’s important to consider various tactics that landlords and businesses use to when negotiating contracts. John Sparacino, a Houston Principal, was recently featured in GlobeSt on this topic, a leading source in commercial real estate news. The article discusses how WeWork is using its potential bankruptcy as a tool to help renegotiate its leases with property owners. John explained how “Bankruptcy affords the ability to cancel leases and cap the rejection damages the landlords can get,” and added, “If there are many years left on a lease, the debtor can reject the lease “and damages are basically capped at one-year’s rent.” Click here to read the full article.
