Coronavirus: Big Picture Approach for Businesses Not Paying Rent
Hello!
We own several commercial industrial/flex buildings across Oregon, Washington, Utah and Texas. Some are multi-tenant. Many tenants are small businesses (e.g catering, CrossFit gyms, contractors), and some of the single tenants are also small businesses as well (manufacturers, event companies, etc.)
We are heavily leveraged on most of the multi-tenant properties, 75% LTV for the most part.
We have already received a message from one of our small business tenants in a multi-tenant property that they expect all their catering to be cancelled and they don't think they can pay April rent.
I expect we're at the start of a recession or at least a bad time because this will last for awhile and we have not personally been through a recession before.
For those with experience, what is your big picture approach / policy / advice for how we should handle our tenants and these requests for reduced or no rent as they come in? I expect this could last for many months and for tenants who lose their entire spring/summer busy season, I imagine they may not be able to pay rent or full rent for the rest of the year.
Thank you,
Kim