Guarantees in Commercial Real Estate

In NYC and other major U.S. markets, landlords often require some form of guarantee to reduce risk when leasing to small businesses, startups, or newly formed entities. The most common types are the Good Guy Guarantee, Personal Guarantee, and Corporate Guarantee—each with different legal implications and financial exposure.

These guarantees are usually introduced during the Letter of Intent (LOI) or lease negotiation phase, and later formalized in the lease agreement. Understanding the differences can help tenants negotiate more effectively and protect both business and personal assets.