Landlords and tenants must work together.

To say the last few weeks have not been easy for tenants would be an understatement. The abrupt stop to our economy has shaken many businesses and employees to the core, and it has caused some to close their companies, some to lay off employees and others to freeze hiring or put a stop to pay increases.

Warehouse tenants who supply retail companies are currently having product sit in their warehouse. Whereas, companies in the food industry and are grocery store related have actually seen huge increases in the turnover of their products.

A good number of companies, not grocery or food related and who have upcoming lease expirations, are in a “holding pattern.” Those in this situation are waiting to see how the next few weeks and months shake out, prior to making any decision. Those that need financial help to get through the next few months and have several years left on their leases are asking the landlords for rent deferment or abatement.

Many landlords are trying to work with the tenants in trying to figure out how to get past this period without financial pain for either the landlord or tenant. We have seen some landlords that are willing to work with their tenants, if the tenant can show proof they have applied for federal grants or funds. On the other end, a few landlords are just denying any assistance. It will be interesting to see how things work out for those landlords that are denying assistance or have no desire to work with the tenants for two reasons: 1) people never forget how they were treated when they needed help and 2) we are entering an unknown market over the next few months, so if those spaces go vacant and be empty for a while.

As a tenant, if you need assistance or advice in working with your landlord, don’t hesitate to reach out and ask for a free consultation.