Tenant Breaking Commercial Lease - Remedies?

[Jimmy H.]

I know there can be a variety of spins on this, and the outcome and potential remedies are entirely situational.

I am looking at a few commercial investments of large commercial single-tenant properties with 10 year leases recently put into place. One of the properties is rented to a relatively large regional bank and the other is an industrial property that is rented to a large recycling company.

I understand that doing due diligence of the company and making sure they have a strong balance sheet is essential. My question is what happens, even after your due diligence, if one of these companies decides not to pay their payments or honor their lease.

If the company is bankrupt, that's one issue where you probaly won't get anything, right? But there are other situations. For example i've read a bit about these types of leases being bonded, how does that work?

If you have experienced such situations, please ellaborate on your story, i'd love to hear some potential situations and their outcomes / remedies.