Lease “Terminations” vs. Lease Modifications

Commercial real estate continues to navigate significant challenges as a result of the confluence of a variety of economic headwinds including higher interest rates, lower demand resulting from remote work, and maturing more favorable debt terms. Federal Reserve Chair Jerome Powell told “60 Minutes” in February 2024 that commercial real estate loans “[feel] like a problem we’ll be working on for years.” He further described the problem as “sizable.” In this environment, some commercial real estate lessees are negotiating changes