In this article, you'll learn:

• The Overview of Senate Bill 939 and its implications for commercial tenants in California.
• The Challenges and criticism of the bill leading to its eventual failure.
• The importance of negotiating lease terms rather than breaking leases during economic hardship.
• How tenant representation can help avoid lease breaks through strategies like subleasing and sale-leasebacks

The coronavirus has left many commercial tenants struggling to pay their rent. To get by, many have turned to the government for help. One state that was poised to address the situation was California. 
 
In the Golden State, Senate Bill 939 was introduced, which would allow some commercial tenants to negotiate or break leases if they were suffering from economic hardship sustained during the COVID-19 crisis. The authors of the bill, Senator Scott Wiener and Senator Lena Gonzalez, drafted it with the intention of “preventing the potential for widespread closures of restaurants, cafes, bars, entertainment venues, and other businesses most affected by the economic shutdowns.”