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Subordination, Non-Disturbance and Attornment Agreements

July/August 2010
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One of the most frequently negotiated, and least understood, issues in an office lease transaction is whether a tenant should insist upon the landlord obtaining a Subordination, Non-Disturbance and Attornment Agreement ("SNDA"). An SNDA is an important, and in some cases critical, requirement for tenants entering into long-term leases, particularly if the tenant is making a significant investment in constructing and equipping a new space. Not every lease deal needs to be conditioned upon obtaining an SNDA, and a clear understanding of the SNDA and its practical significance is critical to making sound decisions about its relative importance, and what provisions it must contain.