The COVID-19 pandemic has strained many parts of the global economy over the last two years. Included among those most affected are individuals who lost jobs (temporarily or permanently) and had difficulty paying rent on time. This has caused a ripple effect throughout the rental industry. Landlords have in turn struggled to meet mortgage payments, developers have struggled to satisfy investment requirements with respect to affordable housing projects, and market-rate developments may struggle to attract and retain tenants who can meet the market rental rates. Add to this the moratorium on evictions issued by the Centers for Disease Control for a period of time and similar moratoriums enacted by other jurisdictions and there grew a significant gap of rents owed by tenants that remained uncollected by landlords.
Emergency Rental Assistance Programs via the U.S. Treasury and Administered by State and Local Jurisdictions Can Provide Significant Relief
Landlords have several options to keep current tenants intact or reduce the financial ramifications if the tenant needs to step back from its current office footprint.
As we navigate through choppy and sometimes uncharted waters during the coronavirus pandemic, commercial tenants and landlords are experiencing their own challenges. Many businesses are subject to governmental shutdown orders or restrictions on their ability to operate in the manner that was their normal before the pandemic. Some commercial tenants and landlords may be experiencing financial difficulties which impact their ability to pay rent or mortgage payments, respectively. Below are some issues that tenants and landlords should be considering in the current economic climate. It must be noted that although specific options might vary across states/jurisdictions, these common themes should be considered.