Deferral periods are being instituted and banks are offering flexibility on mortgages temporarily to help ease the economic impact of the novel coronavirus and spread of COVID-19.
Ottawa, ON — With recent actions and talks surrounding deferral periods on rent and mortgages, people in the commercial real estate arena need to understand what this all means. What a deferral period might look like can vary drastically as most landlords are dealing with their commercial real estate tenants on a case by case basis. The willingness of landlords to help in these situations is highly dependent on what the building owner’s mortgage situation is. If the bank is offering flexibility on the mortgage to the owner, this leniency should most certainly be passed on to the building’s tenants as well.
The key to negotiating any deferral period is understanding how much rent will be held over and over what period it’s expected to be paid back. Businesses are not created equal and are also affected differently during this time. The context of each business’s ability to pay back rent will differ — especially during a crisis when financial resource prioritization is paramount.
Real Strategy Advisors have already helped several tenants negotiate short-term COVID-19 relief. Please contact Darren Fleming (dfleming@realstrategy.com) if you’re looking to have a conversation with your landlord or are currently in talks with them and want to know your rights. You can also reach out to Real Strategy Advisors (hq@realstrategy.com) today for more information on commercial real estate and how to obtain relief in these uncertain times.