[WSBAPT] Rent Relief Requests - Response and Strategies

[Matt Yates]

We have had one commercial property owner client receive a request from a brewery/foodservice tenant for rent relief.  Tenant's letter indicates that it is taking due diligence cost cutting measures to reduce its costs as low as possible but rent is obviously still a significant portion of monthly expenses.  Accordingly, since tenant is now effectively closed, it is asking for some rent relief to try to weather this storm.  Generally, I am advising my client to take a long term perspective even if that includes some short term shared pain.  We are having a call Monday to discuss specifics but one idea we are considering is an extension of the lease term by the equivalent of any months that rent is reduced.  Client also suggested trying to make up any current discount on later months which may or may not be a realistic option given a likely economic downturn.  Low hanging fruit is simply reducing rent but in these unusual circumstances I'm curious what objective ways there are to share the pain in an effort to get to a productive outcome.

I presume that others have clients that are seeking advice on similar matters.  Would anyone care to respond with ideas or strategies?  Tenant and Landlord perspectives are welcome.


Matthew D. Yates
Attorney at Law
Yates Marshall, PLLC
10000 NE 7th Avenue, Suite 200
Vancouver, WA 98685
Phone: (360) 449-6100
Fax: (360) 449-6111
matt at yatesmarshall.com<mailto:matt at yatesmarshall.com> (New Email Address)
www.yatesmarshall.com

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