COVID-19 rent suspension or reduction clause for a retail lease at a shopping centre or retail estate | Practical Law

COVID-19 rent suspension or reduction clause for a retail lease at a shopping centre or retail estate | Practical Law

A clause for inclusion in a retail lease at a shopping centre or retail estate which suspends the annual rent if, to prevent or delay the spread of 2019 novel coronavirus disease (COVID-19) (or, optionally, other epidemic or pandemic diseases), the government requires the tenant not to use the demised property for the purposes of its current business or requires the landlord to prevent or restrict access to the demised property so that the tenant cannot use it for the purposes of its current business. Where the tenant is an essential retailer in a shopping centre or retail estate, the clause also reduces the annual rent if the government requires any occupier of the shopping centre or retail estate (but not the tenant) to close and that results in a reduction by an agreed percentage of either the tenant's turnover or footfall at the shopping centre or retail estate.

COVID-19 rent suspension or reduction clause for a retail lease at a shopping centre or retail estate

Law stated as at 31 Aug 2021, England, Wales
A clause for inclusion in a retail lease at a shopping centre or retail estate which suspends the annual rent if, to prevent or delay the spread of 2019 novel coronavirus disease (COVID-19) (or, optionally, other epidemic or pandemic diseases), the government requires the tenant not to use the demised property for the purposes of its current business or requires the landlord to prevent or restrict access to the demised property so that the tenant cannot use it for the purposes of its current business. Where the tenant is an essential retailer in a shopping centre or retail estate, the clause also reduces the annual rent if the government requires any occupier of the shopping centre or retail estate (but not the tenant) to close and that results in a reduction by an agreed percentage of either the tenant's turnover or footfall at the shopping centre or retail estate.