There are many aspects of the commercial real estate process that are important to be familiar with. In addition, there are a variety of parties typically involved in a commercial real estate transaction which is why each should understand the legal protections available to them and the legal processes associated with a commercial real estate transaction.
For owners of commercial retail property it can be frustrating when tenants abruptly close up shop and file for bankruptcy. Many times these situations result in months of lost rental income for the property owner. If the tenant files a strait bankruptcy such as Chapter 7, a rental space cannot be leased to a new owner until a bankruptcy discharge is issued. This can take three to four months in a simple bankruptcy. If additional issues or objections arise, the waiting period can be even longer. When a tenant files a reorganization plan such as Chapter 11 bankruptcy, and chooses to assume a lease, it can still take months before plan payments begin disbursement and monthly rents begin flowing again.