First Court Decision in Germany on Rent Payment Obligations of Retail Tenants During Lockdown

Overview


Since the beginning of the Coronavirus crisis and the associated temporary official closure of retails stores in Germany (lockdown), real estate investors and retail tenants have discussed whether tenants are entitled to partly withhold rent payments or demand rent reductions for the duration of the official closure of the rental premises. We have reported on the details and open questions in our previous article, FAQ’s for landlords and tenants in Germany (view here). Now the first court decision regarding this particular question has been published. In this case, the Regional Court Heidelberg ruled that, despite the temporary closure of the relevant retail store, the rent was payable in full. The decision is not yet legally binding. Read the full article in German here.