Part 21*: What is a “SNDA” in a commercial lease?

A “SNDA” is an abbreviation for Subordination Nondisturbance and Attornment Agreement. At its core, the Tenant agrees to subordinate the lease agreement to a superior lienholder, such as a lender and in return, the lender agrees not to disturb the Tenant’s leasehold rights in the event that the lender forecloses on the lien provided that the Tenant is not in default of its lease obligations.

A SNDA agreement may be important for a Tenant who plans to invest substantial resources in the demised Premises. Without the SNDA, the Tenant risks losing its valuable Tenant improvements, e.g. if the Landlord defaults on its mortgage and the lender forecloses.

In some cases, the Tenant will tie the rent commencement date to delivery of a fully executed SNDA in order to protect its free rent period.

*Thank you for taking the time to read this article. This article is part of our “Commercial Leasing for Non-Lawyers,” a Blog Series on Commercial Leasing. Other aspects of commercial leasing transactions in New York are discussed in other Parts of this series.

For questions about residential real estate law, or general information about our firm, please contact us at (914) 338-8050 or send an e-mail to We look forward to hearing from you.

Betensky Law PLLC
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