Perpetual Leases

A landlord client came to me with a problem. He was stuck in a lease with an uncooperative tenant paying an unreasonably low rent, and he wanted to know how he could terminate or renegotiate the lease. The challenge? The lease contained a provision that allowed the tenant to renew the lease at the end of every lease term, meaning that the unfavorable terms could conceivably apply forever. And, while uncooperative, the tenant’s behavior didn’t rise to the level of a material default, which would allow for a valid termination of the lease.