Tenant’s Comprehensive Guide to Rent Relief

COVID-19. We are in the midst of a modern-day global crisis. There is no playbook. No one has all the answers, and everyone is adapting on the fly – some better than others. The best decisions are typically educated ones, so the intent of this guide is to arm you with information that applies to all commercial leases: office, industrial, medical, and retail space.

Rent Relief

There are a variety of methods to structure rent relief. The most common options are:

  • Rent Abatement: Free or waived rent (2 months free)
  • Rent Reduction: Partial rent, such as 50% rent
  • Late Rent (aka Delayed Rent): Pay later in the month instead of on the first
  • Rent Deferral: Repayment of a deferred amount by amortizing it over a defined period, adding it to the end of the lease term, repaying it with a lump sum on or by a specific date, or in exchange for extending the lease (e.g. for 1 year). One of the most prevalent strategies proposed by landlords.
  • Application of Security Deposit: Use the security deposit to help offset the rent burden.
  • Promissory Note: Convert the amount of debt (i.e. rent) forgiven by the landlord to a separate promissory note.

Which option is the best for you? Download your copy of Tenant’s Comprehensive Guide to Rent Relief.

Related blog posts

Fun Office Signage
Blog
May 28, 2020

Conversations with Cohen - Designing the Post-COVID Office

Reducing density, adopting social distancing practices and focusing on elevated cleaning and hygiene has become the baseline on which many businesses are planning re-occupancy. But what does that look like from an execution standpoint and how will design play a role?
Interior building construction
Blog
May 27, 2020

COVID-19’s impact on construction and project management

Despite the ongoing coronavirus outbreak, many regions have kept job sites open by declaring construction an essential business. Even so, a survey of Project Managers throughout North America indicates many initiatives are still experiencing delays.