What is Force Majeure?

Definition

Force majeure is a lease provision that excuses one or both parties from performing lease obligations when extraordinary events beyond their control prevent performance — natural disasters, pandemics, government orders, wars, or labor strikes. In the CAM context, force majeure events can affect operating expenses (emergency repairs, increased cleaning costs, insurance claims) and tenant payment obligations simultaneously. The COVID-19 pandemic highlighted force majeure implications for CAM reconciliation as building operating expenses shifted dramatically while some tenants invoked force majeure to suspend rent and CAM payments. Property controllers must track whether force majeure claims affect CAM payment timing, and ensure that extraordinary expenses incurred during force majeure events are correctly classified as recoverable or non-recoverable based on lease terms.