RadioShack, Quizno’s, Sbarro, Quiksilver and other nationally-recognized companies filed for bankruptcy protection over the last two years and the impact is felt in malls and shopping centers throughout the country. Partner Victor Sahn authored the Western Real Estate Business article, “The Impact of Bankruptcy Filings on the Commercial Real Estate Sector,” examining the challenges commercial real estate companies face as a result of retailers filing for bankruptcy.
Mr. Sahn notes that landlords will be tested in their ability to keep important tenants as these bankruptcies continue and retailers in general increase their focus on Internet sales. However, there are ways landlords can protect themselves, such as obtaining a letter of credit as opposed to a cash deposit, and obtaining guarantees from tenants whenever possible.