Work to Get a Personal Guarantee When Leasing Commercial Space

Late last year, Boston Market suddenly closed more than 300 locations across the country, including several in Central Florida. Today, there are “for lease” signs in front of many of their still vacant locations.

For the owners of the buildings, this can be very difficult as many of the sites are owned by investors and family trusts. In today’s marketplace, finding new tenants for commercial space designed and built for a specific client can be very difficult.

And recouping lost rent will be extremely difficult. After all, the company owes $2.7 million in back pay in New Jersey. It owes another $300,000 in back pay and taxes in Colorado. U.S. Foods claims it is owed $11 million by the company.

According to Bisnow, there have been more than 140 lawsuits filed against Boston Market since 2020!

While there may be little recourse for the owners of those properties (as you can’t be paid if the company is broke), the empty spaces are a reminder that as a landlord, you can ask for a personal guarantee when leasing your commercial space.

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