Notifying Existing Commercial Tenants of Ownership Change

[John Hunter]

Newbie Commercial Landlord Question!

Closing on a commercial property in Illinois later this week with a strong tenant already in place with a lease signed thru 2027. To anyone with experience acquiring properties with existing tenants (who you strongly desire to keep!), how did you inform them of the change in ownership? Is there a legal process that needs followed? Would a simple letter explaining the ownership change suffice? In-person conversation? 

Thanks in advance!

[Nathan Gesner]

I'm not aware of any "legal" process, but you should definitely let them know of the change in writing. I send a letter that states when the change of ownership is in effect, how they can contact me, report maintenance, pay rent, etc. I also remind them that the terms and conditions of their existing lease do not change; only ownership has changed.

If this is a larger commercial property with a national company as the renter, then you may want to consider involving an attorney just to cover any legal issues. You don't want to have problems and then get slammed by a team of Best Buy attorneys ripping you apart.