Struggling Retailers Owe A Mountain of Past Due Rent
November 20, 2020
Much has been made about struggling renters and the accumulation of back rent that many face, but it’s not just residential real estate, but commercial too that is dealing with the problem. American retail stores, restaurants and gyms, after months of deferment, owe a total of $52 billion in unpaid rent, according to a report from Bloomberg. Economists worry that landlords demanding immediate repayment in full could be insurmountable for many businesses and may spark a wave of bankruptcies. The worry now is that the surge in coronavirus cases may keep consumers out of brick and mortar stores, and governments could impose additional limitations on businesses, causing them to fall farther behind.
Analysts who spoke to Bloomberg believe that the recent vaccine announcements may make landlords more willing to work with tenants, as the possibility of resuming normal business is on the horizon. However, they caution that it may be a matter of not months, but years before many retailers are able to climb out of the amount of rent debt they have accrued.