Commercial Leases in Bankruptcy

[Jimmy H.]

I am interested in investing in a single - tenant industrial facility. I am curious as to where a lease stands in the event of bankruptcy.

I know you must do due diligence on the single tenant company that you have a lease signed with - this is most important.

It is my understanding that other than bankruptcy, there are not too many ways for the tenant to break lease? Is this true what other things might I watch out for besides bankruptcy.

Also, in the event of bankruptcy where does a lease stand. If the tenant has a 10 yea rlease and decides not to pay and/or is getting foreclosed on, what happens to the lease agreement.

I understand this is very sitauational, but help me get an understanding of what can happen and what to look out for.