The risk of recession continues to grow, thanks to factors like rising global interest rates, high inflation, and continued supply chain challenges. Accordingly, governments may engage in greater public spending to stimulate economic growth. Interestingly, it appears that governments invoke their powers of eminent domain in connection with infrastructure projects that are meant to serve as economic stimuli.
Lawyers that understand the possible impact of increased infrastructure spending on their clients’ lease portfolios will be better positioned to confidently provide trusted advice. Understanding these impacts requires the identification, review, and analysis of condemnation and termination provisions in lease agreements. To get a sense of what kinds of termination rights relating to condemnation are common in leases, we used Kira, Litera’s leading machine learning contract analysis solution, to automatically review 50 leases recently filed on the U.S. Securities and Exchange Commission’s EDGAR database.
Download the study to learn more about:
- The prevalence of landlord and tenant termination rights in connection with condemnation actions;
- Specific triggers of termination rights, including the percentage of premises to be taken and the taking of parking and shared areas;
- What leases say about abatement in the event of condemnation; and
- How machine learning-based document review technology can be used to instantly identify how leases may be impacted by an eminent domain action.