CREJ

INSIDE M any landlords and prop- erty managers are feeling the effects of the global pandemic – not neces- sarily the contagious effects of fevers, aches, etc., but the economic effect as many small businesses have had to close their doors. It is devastating to see the number of small businesses that have been hit so hard. And we may not be at the end yet. It is likely that certain segments of the commercial real estate world will see additional business closures in the future. Many businesses will struggle, per- haps not to the point of closure, but stressed to the point of not being able to make lease payments or fulfilling other lease obligations. This situation is not new. In the span of my career, I’ve seen the Black Monday stock market crash of 1987, the collapse of the savings and loan industry and subsequent Financial Institutions Reform, Recovery, and Enforcement Act of 1989, the 2001 dot-com bubble, the recession of 2008 and now a global pandemic. Each of these events (and others) have had devastating impacts on tenants and landlords. Many property managers likely will be, or already have been, approached by tenants requesting some sort of rent relief, abatement or other lease concessions. This article will explore some possible strategies that might be of value as you evaluate whether to offer a “lifeline” to a struggling tenant. The underlying premise of this article is that all things being equal, it is usually better to keep a ten- ant than find a new one. Lost rent, leasing commissions and tenant improvements are all costs incurred when having to re-tenant a space. This premise isn’t always true, but it’s mostly true. There are excep- The time is now to tackle energy-efficiency projects as demand for green continues Sustainability efforts The annual energy-efficiency awards included new COVID-19-related categories this year Energize Denver PAGES 17-24 A letter from the association president and highlights from the virtual award ceremony BOMA update Please see Page 34 January 2021 PAGES 32-33 PAGES 11-13 How (& when) to help struggling tenants William Low Commercial broker, Metro Brokers – DTC, bill@ coloradometrore. com Scott Graham, Unsplash The pandemic continues to devastate many small businesses. There are a variety of things to explore if considering whether to offer a “lifeline” to a struggling tenant.