Letters of Intent | Commercial Leasing 101: SNDAs, TIs, and Personal Guarantees

Commercial Leasing 101: SNDAs, TIs, and Personal Guarantees

February 25, 2026 / 26:52/E46

Most business owners look at a commercial lease and see rent and square footage. Robby Pinnamaneni sees a credit instrument that can make or break your company. In this episode of Letters of Intent, Pankaj and Sahil sit down with Robby, a seasoned real estate attorney and founder of The Leasing Lawyers, to dismantle the myths of commercial leasing.

They discuss why the term "boilerplate" is a trap used to rush bad deals, why Tenant Improvement (TI) allowances are actually high-risk loans, and why the 2026 debt maturity wall means you need to audit your landlord's finances before you sign. Plus, Robby shares a sophisticated strategy for investors to acquire distressed properties for cents on the dollar using "mezzanine debt."

Takeaways

Lease = Loan: A commercial lease is a credit instrument. You are taking on a massive financial obligation. Treat the negotiation with the same seriousness you would a bank loan.
The SNDA Essential: If your landlord defaults on their mortgage, the bank can kick you out—unless you have a Subordination, Non-Disturbance, and Attornment (SNDA) agreement. In 2026's distressed market, this is non-negotiable.
Diligence Both Ways: Stop trying to impress the landlord. In a market with high vacancy and distressed debt, you need to audit their balance sheet. Can they afford to fix the HVAC? are they about to be foreclosed on?
The "Boilerplate" Trap: Brokers often label risky clauses as "standard" or "boilerplate" to close deals fast. Never accept "it's market" as a valid legal explanation.
Mezzanine Debt Strategy: Robby explains how savvy investors are buying mezzanine debt to foreclose on the entity owning a property (UCC foreclosure) in 60-90 days, bypassing the year-long judicial foreclosure process.

Soundbites

"A lot of times people think the landlord's being generous with Tenant Improvements. They're not. It's effectively a loan."
"I hate the term 'boilerplate.' Brokers use it to instill a mantra so they can close the deal and get their commission."
"It's no longer a beauty contest of the tenant trying to impress the landlord. The landlord also has to impress the tenant."
"If you don't have an SNDA and the landlord defaults, the lender can just kick you out. Your goodwill, your build-out, it all goes out the window."
"You gotta start thinking optionality. What if I want to sell? What if I need less space? The lease governs your exit."

Keywords

Commercial Real Estate, Leasing, Robby Pinnamaneni, Tenant Rights, SNDA, Mezzanine Debt, Distressed Real Estate, Business Law, Entrepreneurship, Due Diligence, Carbon Law Group

Guest: Robby Pinnamaneni (The Leasing Lawyers)