From the NY Times:
Office landlords have always scrutinized the financial stability of prospective tenants, but now they are finding themselves under the lens.
Prospective tenants are asking for financial statements from
landlords, hoping to avoid companies that might default on their mortgages and leave tenants at risk of losing the space. Tenants are also more wary of subleasing space, and are tending to flock to buildings with stable owners.
Wow. The era of overly optimistic pro-formas, stupendous leverage, outrageous rent projections and shaky underwriting has led to the greatest tenants market in the last 10 years.
There is some good advice in the article having to do with TI's. Get them put into an escrow to prevent them evaporating in a BK situation.
Or to secure your TI's you might look into a "right-to-offset" which means that if your TI's are not paid you can deduct them from your rent.
"Self-help-rights" Get compensation from your landlord if your Full-Service-Gross lease is in fact a bare-bones triple net, I.E. your landlord is not pulling his weight in maintaining the property.
Or you could get a "Non-disturbance agreement" which means that if your landlord goes BK, the bank has to recognize your existing lease.
Pretty good article and useful information.
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