Retailers have boarded up their windows. If you have been wandering the streets of New York City, I’m sure you have wondered whether these businesses are able to pay rent.
According to Crain’s New York, retailers are holding out and are seeking more agreeable terms for the pandemic.
"Tenants are not paying rent as a general rule," said Dena Cohen, a partner in the real estate practice at law firm Herrick Feinstein. "Both the small retailers and national brands are not paying.”
Most retailers, both large and small, have not made their full payment. Some of the most prominent businesses and restaurant chains collectively have paid just half of the rent they owed for the month of April.
Initially, experts believed that the virus would only affect the mom-and-pop shops. Although they are hurting, the horrid economy has really made things difficult for established businesses.
As Crain’s reports, Gap, for example, paid no rent this month. Last month, they were able to pay for 86% of all of their stores. The retailer alone has 28 locations in New York City.
The city’s largest chain, Dunkin Donuts (637 franchised locations in NYC) did not pay rent at 28% of locations. Last month, they were able to pay off 77% of their location’s rents.
Essential businesses are paying on-time, as they have been thriving. Trader Joe’s and Whole Foods have paid 99% of all locations nationally.
Lawyers are prepping for any legal work expected to come their way. It is imperative that retailers and landlords begin a conversation and come to terms on how rent should be paid while the virus continues to loom large.
"A landlord is not just going to come out and say, 'Hey, I'm giving you four months' free rent,'" said Gregory Tannor of Lee & Associates. "But you have to start the conversation somewhere."
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To read the full story in Crain’s New York, click here: https://www.crainsnewyork.com/real-estate/retailers-stiff-landlords-april-hoping-get-better-rent
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