Property Management

A 'subordination, non-disturbance, and attornment' (SNDA) agreement in commercial real estate benefits a tenant by:

AA. Reducing their rent if the building is refinanced
BB. Ensuring the tenant's lease will be honored if the landlord defaults and a new owner takes over✓ Correct
CC. Allowing the tenant to purchase the building at a discount
DD. Subordinating the landlord's interests to the tenant's

Explanation

An SNDA protects a commercial tenant from eviction if the landlord's lender forecloses. The tenant subordinates their lease to the mortgage (S), the lender agrees not to disturb the tenant if they're current (ND), and the tenant agrees to recognize the new owner (A).

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