Drop-Dead Delivery Date: Is It Worth the Risk?

by Jonathan Newman, Esq.

One thing you do not like to hear when negotiating a commercial lease agreement is that the tenant must have possession of the space by some important date, known as the “drop-dead date.” Why? Because the tenant usually wants the landlord to suffer a variety of draconian consequences if the drop-dead date isn’t met. Examples include free rent, significant monetary penalties, and sometimes, the ability for the tenant to terminate the lease agreement.