Bracewell’s Brock Bailey recently discussed with the Dallas Business Journal the state of commercial real estate documents in light of COVID-19 and how the market is adapting to the pandemic.
“The pandemic has made us all stop and think in the negotiation process of what market is; what makes sense for each party; and how parties address their concerns, manage the risks and mitigate the downside,” said Bailey. “Whether you’re talking about a construction loan, equity documents, purchase and sale agreements, or leases, the pandemic played a critical role. We all do our very best on both sides of deals to think of the worst-case scenario and try to accommodate that in the documents. COVID was certainly never mentioned. A global pandemic hasn’t occurred in 100 years, so it wasn’t something top-of-mind in most documents.”
“Both sides know the world we live in now, know the perceived worst-case downside in terms of what a pandemic can cause and try to address it through negotiations,” added Bailey.