Initiates New Lease Structure to Accommodate Pandemic Concerns
Andy Anderson, a 30-year Texas retail real estate veteran, is pleased to announce the formation of Restaurant Properties Group in order to provide specialized services to investors, owners and occupants of restaurant real estate.
Prior to forming Restaurant Properties Group, Mr. Anderson was a Vice President of Henry S. Miller Brokerage, one of the largest independent commercial real estate firms in Texas. He also previously served as Vice President and subsequently President of ACRES, Incorporated, a private real estate company specializing in retail, office and industrial property brokerage nationwide and in Mexico.
Coronavirus and Force Majeure Clause
Without some concessions from landlords and/or their lenders, the environment for restaurant transactions will certainly be more difficult moving forward.
“As far as leasing goes, we are still making deals,” says Anderson. “However, in our recent lease negotiations, we’ve had to push for a shift in the customary lease structure, specifically the force majeure clause. There has to be a mutual understanding between landlords and tenants that the force majeure language customarily contained in leases, which was intended to protect only landlords, needs to be changed. Now, both the landlord and the tenant must be protected in a force majeure event. Furthermore, the definition of a force majeure event needs to be broadened to include infectious diseases, such as COVID-19.”
On the sales side, Anderson anticipates contracts will need to adopt and include the same modified force majeure language mentioned above with respect to performance timelines contained in a sale contract that governs both parties.
About Restaurant Properties Group
Restaurant Properties Group is a dynamic, full-service real estate firm comprised of experienced and well-respected real estate professionals specializing in restaurant real estate. Brokerage services (tenant/buyer representation and landlord/seller representation) development, site selection and business sales are provided.
