9 votes

Nearly half of commercial retail rents were not paid in April and May

Posted by skybrian
Tags: business, rent, coronaviruses.covid19, retail, landlords, author.heather long, source.the washington post, paywall.hard
https://www.washingtonpost.com/business/2020/06/03/next-big-problem-businesses-cant-or-wont-pay-their-rent-its-setting-off-dangerous-chain-reaction/

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Title
The next big problem for the economy: Businesses can't pay their rent
Word count
1787 words

2 comments

  1. skybrian
    Link
    I'm reminded of a quote attributed to many people: I guess that applies to landlords, too.

    I'm reminded of a quote attributed to many people:

    If you owe the bank $100, that's your problem. If you owe the bank $100 million, that's the bank's problem.

    I guess that applies to landlords, too.

    4 votes
  2. skybrian
    Link
    From the article:

    From the article:

    Nearly half of commercial retail rents were not paid in May. Companies as big as Starbucks say the financial devastation from the shutdown has left them unable to pay their full property bills on time. Some companies warn they will not be able to pay rent for months.

    The problem for the broader U.S. economy is that when businesses like Ross Stores and T.J. Maxx stop paying rent, it sets off an alarming chain reaction. Landlords are now at risk of bankruptcy, too. Commercial real estate prices are falling. Jobs at property management companies and landscapers face cuts. Banks and private investors are unwilling to lend to most commercial real estate projects anymore, and cash-strapped city and local governments are realizing the property taxes they usually rely on from business properties are unlikely to be paid this summer and fall.

    1 vote