‘Nobody Seems To Know’: Landlords Concerned Government Could Miss Next Rent Payment Amid Shutdown

The government shutdown, now the longest in U.S. history, has some office owners worried their federal tenants might not make the next rent payment on time, potentially hurting their bottom line and creating lasting damage to the idea that the government is a stable tenant.

The General Services Administration, which makes the government`s rent payments in arrears after the end of the month, has yet to give landlords a definitive answer on whether they will be able to pay January`s rent amid the government`s funding lapse. The GSA put a message on its website to landlords Jan. 11 seeking to address concerns it has heard...

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RSK: Seems to me they will need to pay by contractual law but I am not a Lawyer. I know some of you are big in leasing to the Feds. Can you give us any insight into this?...

Ken Notes: I would consider adding a late payment penalty clause into my federal leases with "for any reason" language...