Paul Bauer Discusses Challenges of Federal Lease Terminations for Central Massachusetts Landlords
Property owners in Central Massachusetts are facing a challenging situation after receiving notice that the Trump Administration is canceling a number of federal leases. Seven properties, including those used by the IRS and the U.S. Department of Agriculture, have been impacted. Paul Bauer spoke with the Worcester Business Journal about the lease terminations and stated that local landlords may have limited legal recourse to address the abrupt terminations:
“Leases negotiated by the U.S. General Services Administration (GSA) generally include a soft period in the second half of the lease where the government can terminate the deal at will. As I understand it, a lot of these GSA leases will have a firm term and then after five [or so] years, they have the right to terminate with some notice.” Paul said he suspects the Trump Administration is focusing on leases which are in that soft period.
With several leases already past their termination right date, the cancellations come as part of a broader strategy from the Trump Administration and the Department of Government Efficiency to reduce federal real estate holdings.
Paul notes, “The takeaway I’d have is to really look closely at your leases, because they’re moving so fast that you really want to understand what the termination rights are.”
Continue reading “Attorney: Landlords hit by Trump’s federal lease cancellations have little legal recourse” on the Worcester Business Journal website (subscription required).
Categorized: News
Tagged In: federal leases, lease terminations, federal real estate holdings