In this article, we explore:

• Protecting tenant rights in case of landlord default or foreclosure.
• The three components: Subordination, Non-Disturbance, and Attornment.
• Risks of not having an SNDA in your lease.
• Importance of consulting a commercial real estate attorney for guidance.

New office tenants are under a lot of pressure to find the perfect properties. They’re tasked with maintaining a delicate balance of securing the best prices on the market while ensuring that the deals are not too good to be true in the long run.
Because record low office valuations are increasingly putting landlords at risk of default. But if that happens, they’re not the only ones going down with the ship. Tenants and lenders will undoubtedly be implicated in the event a landlord hands back the keys…that is, unless you have an SNDA.
 
Let’s discuss the Subordination, Non-Disturbance, and Attornment Agreement (SNDA) and the critical things every tenant should know about it.