Big national retailers plan to stop paying rent to offset coronavirus closures

[SoCalNative]

Major retail and restaurant chains, including Mattress Firm and Subway, are telling landlords they will withhold or slash rent in the coming months after closing stores to slow the coronavirus, according to people familiar with the situation.

In a brewing fight, chains are calling for rent reductions through lease amendments and other measures starting in April, said the people, who asked not to be named because the discussions are private.

These moves mark the next phase in virus fallout: What happens to billions in rent owed for businesses that have been closed?

The stakes are high. Retail has a slew of big chains in turnaround mode. And if they do withhold payments, there would be a ripple effect. Landlords can’t afford to stop collecting rent for long, with many property owners sitting on loads of debt.

https://www.latimes.com/business/story/2020-03-24/retailers-coronavirus-rents

[Sherman A1]

1. Guess those landlords and businesses

should try to renegotiate their loans and perhaps build up a rainy day fund of about 3-6 months operating capital. Just like us peons are told to do.....

[Mosby]

2. The trump bud in the article is full of shit.

Near the end it mentions that his company is sitting on 3 billion in cash. He can defer rents for years if he wanted to.

In my experience, landlords are almost never highly leveraged. They own their properties outright. That's why they can leave properties unoccupied for so long, all they pay is property tax.