ARTICLE
5 August 2025

International Insights: Crossing Jurisdictions (Tenant Insolvency In The European And US Commercial Real Estate Markets)

KL
Herbert Smith Freehills Kramer LLP

Contributor

Herbert Smith Freehills Kramer is a world-leading global law firm, where our ambition is to help you achieve your goals. Exceptional client service and the pursuit of excellence are at our core. We invest in and care about our client relationships, which is why so many are longstanding. We enjoy breaking new ground, as we have for over 170 years. As a fully integrated transatlantic and transpacific firm, we are where you need us to be. Our footprint is extensive and committed across the world’s largest markets, key financial centres and major growth hubs. At our best tackling complexity and navigating change, we work alongside you on demanding litigation, exacting regulatory work and complex public and private market transactions. We are recognised as leading in these areas. We are immersed in the sectors and challenges that impact you. We are recognised as standing apart in energy, infrastructure and resources. And we’re focused on areas of growth that affect every business across the world.
The global commercial real estate market paints a varied picture, with certain jurisdictions and sectors recovering quicker than others from the Covid-19 pandemic and continuing geopolitical uncertainty.
European Union Real Estate and Construction

Multi-jurisdiction guide: tenant insolvency

The global commercial real estate market paints a varied picture, with certain jurisdictions and sectors recovering quicker than others from the COVID-19 pandemic and continuing geopolitical uncertainty. Higher interest rates and leveraged balance sheets means many landlords are keeping a close eye on the financial health of their tenants. The legal remedies open to landlords of commercial property vary by jurisdiction. Local expertise is crucial, particularly as insolvency processes can be fast-paced and landlords need to respond quickly to safeguard their interests. This guide focuses on five jurisdictions - France, Germany, Spain, the UK and the US, where Herbert Smith Freehills Kramer LLP are ideally placed to advise landlord clients on these issues. We provide an overview and comparison of the insolvency processes that apply in each jurisdiction to aid landlords and investors in the commercial real estate market looking to expand into these areas. In particular, we consider:

  • What are the main insolvency/restructuring processes a landlord may encounter in relation to their tenant?
  • What remedies does a landlord have for the recovery of rent arrears and how are these impacted by insolvency proceedings?
  • How can a landlord regain possession of their property during insolvency proceedings?
  • What is the impact of a tenant's insolvency on undertenants/guarantors?

We have leading teams in each of the jurisdictions who can advise on the issues described in this guide. Please see the key contact details at the end of this document

What are the main insolvency/restructuring processes a landlord may encounter in relation to their tenant?

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What are the main insolvency/restructuring processes a landlord may encounter in relation to their tenant?

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What remedies does a landlord have for the recovery of rent arrears and how are these impacted by insolvency proceedings?

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What remedies does a landlord have for the recovery of rent arrears and how are these impacted by insolvency proceedings?

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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