To Our Valued Tenants, Landlords, and Friends:

Just a few weeks ago, to many, legal concepts and topics like forbearance, rent deferral, and force majeure, were mere words on a contract.  Unfortunately, many business owners are becoming aware of what these words mean, how they are used, and how they affect the business of Tenants and Landlords. 

Lloyd Commercial Advisors (LCA) has a front row, court-side seat at the quickly changing Commercial Real Estate environment.  We are fortunate to be a guiding resource to our clients, friends and associates. LCA has the background and experience to address the issues, concerns, and actions that may take place under the current business climate.  Below is a brief summary of recommendations to frequently asked questions.

For Tenants Requiring Rent Deferral:

• Send a letter saying you can’t pay rent AND propose a plan.
• Plan on the Landlord asking for financials to prove hardship.  Provide detail!
• Ask early.
• Use conviction and show that you’ve done your research on what it takes to not only survive, but thrive through this unprecedented time.
• Speak to your Banking and CPA relationships often and make sure they are monitoring the evolution of local, State and Federal relief programs.

Landlords Dealing with Loss of Cash Flow:

1. Profits may not be an option for the next 45-100 days.
2. If forbearance is required from the bank, keenly negotiate what happens on the last day of forbearance.
3. Adopt the phrase “Any rent is better than no rent” when negotiating with current tenants.
4. Document everything in a lease amendment.
5. Engage an Attorney to draft all documents, and don’t be shy in seeking to price a document from your legal counsel.
6. Speak to your Banking and CPA relationships often and make sure they are monitoring the evolution of local, State and Federal relief programs.
7. Keep your eye on the ball, meaning the goal is to minimize financial losses and weather the storm.  Remember kindness since none of us has asked for this and we are all in this together.

LCA is dedicated to the all-around, well-being and safely of our Family, Friend and Clients.  Please stay safe and let us know if we can help in anyway.