It’s difficult time for many Boston Metro businesses. While Massachusetts has a gradual reopening underway, small and large companies alike have lost considerable sums during pandemic closures. One major franchise, The Cheesecake Factory, made headline news when it announced it could not make April rent payments to its commercial real estate landlords.
Small businesses in the Boston Metro do not have the same clout as a national chain. Still, The Cheesecake Factory illustrates the most important action that a struggling tenant can take: proactive communication.
Before you reach out to your landlord, be certain you understand the terms of your lease. Review your current lease agreement. It’s also a good idea to obtain legal advice regarding your situation.
Next, think about your long-term strategies. Evaluate your cash flow projections and consider your resources. Before you contact your landlord, it’s best to have a clear idea of your objectives.
For some Boston Metro businesses, a temporary forbearance of rent may be sufficient. Others may need to attempt re-negotiation of their lease agreement. In some cases, a termination of the lease may be sought. Depending on your lease agreement and your landlord, there could be varying levels of difficulty or legality involved.
Please note, under the CARES Act, there is no rent forgiveness for commercial real estate tenants. (However, some adverse actions for non-payment are temporarily suspended.) Ideally, you should approach your landlord or property manager before you have missed a rent payment. Being proactive and presenting a well-thought plan can put the discussion on good footing.
If you are currently exploring your lease options in the Boston Metro, be sure to obtain tenant representation! We can help you!
When you are ready to begin, relocate or expand your business, team up with the Jay Nuss Realty Group, LLC! Whether you are thinking of buying, leasing, or investing in Boston Metro commercial real estate, we can help you find the ideal property.
Contact us today for expert guidance!