Commercial leases include a provision called Subordination, Non-Disturbance, and Attornment Agreement (SNDA). This ensures that even if the landlord’s property is foreclosed upon, the tenant’s occupancy of the premises will continue uninterrupted. It’s essential for tenants investing a significant amount into their leasehold premises. This agreement provides peace of mind to both the tenant and the lender.
When negotiating a lease, it’s crucial to also consider the SNDA with the landlord’s lender. Avoid the hassle of delays or disputes by finalizing the SNDA at the same time as the lease. While lenders usually have a standard form, tenants often request revisions that require negotiations. So make sure to have everything agreed upon upfront to prevent any headaches down the road.
Some tenants prefer attaching the form of SNDA as an exhibit to the lease and requiring its use for all future SNDAs. However, most landlords hesitate due to potential financing limitations in the future.
With our expertise in complex commercial property transactions, Hunter Law Group can help negotiate leases for both tenants and landlords! Don’t rush into signing on the dotted line without proper guidance. Give Hunter Law Group a call today.