The Wave of "Don't Pay The Rent"

Scataphagos

Scataphagos

Seems every business is jumping onto the bandwagon of "don't pay the rent".

How is that justified?

One group benefits (renters) while another gets screwed (landlords)... and it's somehow all OK?
 
If the money isn't there to pay, it is what it is. The landlords' banks will work with them I would imagine.

The system isn't prepared for 70% vacancy in retail, hospitality and services so they will have to be patient.

Commercial real estate's value is heavily tied to having a paying tenant so it's in the LL's best interest to work with the tenants.
 
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New tenants have more issues than established tenants.
This "Don't pay the rent" thing might as well be a *request* by landlords, who tremble at the thought of reviewing/DD/accommodating/monitoring a whole slew of new, UNestablished tenants. :vomit: Customer flow (which established tenants had) is *assurance*, and is a commodity not to be taken/tossed lightly.
 
ElCubano said:
Don’t be a landlord. Lol.
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.%%
LOL-especially if counting on a hi ,no vacancy rate. But those that paid cash for RE are still in good shape.
[ One perhaps big problem for some- some renters don't have 3-6 month savings, which is rather basic, as Dave Ramsey says]…………………………………………………………………………..
 
The Trump playbook was going to be popularized of course, mind you he would be suing the landlord & county for breach of contract due to the mall being closed as well.

It is perfectly normal business. The landlord must take it up the chain.
 
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What affect on commercial RE If social distancing (in some form) becomes an everyday practice of our society, perhaps with local, state, or even Fed regulation?
 
Cheesecake Factory paid restauranteur Sam Fox $441M (October 2019 closing, cash payments of $88M and $308M) for some stores and his brains.

And now they want to skip out on rent for their legacy stores.

I was almost ready to feel sorry for the CEO’s heartfelt clickbait headline - until I did a simple Google search. :finger:
 
tiddlywinks said:
What affect on commercial RE If social distancing (in some form) becomes an everyday practice of our society, perhaps with local, state, or even Fed regulation?
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It would dramatically change the landscape of the retail, hospitality and service sectors.

If you think there are a lot of empty malls, strip centers and commercial buildings now, wait until social distancing becomes common.

Although I don't think it will last. Humans are social by nature. I'm an introvert and I'm going crazy with less than two weeks of social distancing.
 
If a lease is about to expire and you have no desire to renew t why pay the rent. The courts will be tied up-for years with landlord tenant cases.
 
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