Many businesses are currently facing a similar situation – drastically reduced cashflow as a result of the COVID-19 pandemic. While some commercial landlords may have empathy for their tenants’ plight, landlords also have bills to pay.
A recommended first step in working through rent payment issues is for commercial tenants to start conversations with their landlords.
While landlords may not be able to provide rent relief to every tenant who asks, tenants should examine their short-term cash flow situation and determine what relief to ask for. A landlord is more likely to accept a request for rent deferral or forgiveness if tenant shares in the burden.
Each tenants’ situation will be different, and some commercial landlords will be more willing to make a deal with tenants than others, but generally the best outcome for tenants and landlords will be to reach an agreement on short-term rent adjustments, and work together on solutions that make financial sense for landlords and tenants while they weather this storm together.
This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
Wendy M. Reutebuch | Practice Areas: Real Estate, Real Estate Finance and Creditors’ Rights
Wendy represents clients in both Illinois and Wisconsin in a wide variety of commercial real estate and real estate finance transactions. In addition to handling acquisitions, dispositions and leases, Wendy also advises lenders on loan transactions, loan workouts, loan restructurings, forbearance and pre-foreclosure matters. If you need assistance with a related matter, contact Wendy.