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COVID-19 and commercial leases – one year on


Two lower court decisions have confirmed tenants right to claim a COVID-19-related rent reduction in general. However, both decisions must be read carefully and leave many questions unanswered, particularly in cases where shops made or could have made limited use of their premises during the national lockdowns by offering online delivery or click and collect services. In addition, state aid may affect rent reductions. This uncertainty has led to many mutual agreements in the market.
Lockdowns
Since the start of the COVID-19 pandemic, there have been three lockdowns in Austria. During each of these periods, the customer area of shops had to be closed to the public, except for certain essential retail stores (ie grocery stores and pharmacies).(1) Restaurants could offer takeaway and delivery services only (subject to certain restrictions) and hotels were shut subject to certain exceptions (eg, persons who were staying at the hotel at the start of the lockdown could remain ....

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