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What happens when a tenant goes bankrupt and closes a store?

April 26, 2017bankrupt happens store tenant

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What happens when a tenant goes bankrupt and closes a store?

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Bankruptcy by a tenant does not necessarily mean loss of rent or vacancy. Tenants in bankruptcy must reject a lease before they can stop making rent payments. We have had a few cases of retailers filing for bankruptcy and never missing a rent payment to us during their reorganization process. If they do reject the lease, they must vacate the property and we can then seek to re-lease the property to another user.