Hello Investors!
It looks like we are slowly returning to a state of normalcy here in California. I am concerned about a second wave of the virus that may send us all back indoors. But for now, it appears that the governor has given the OK for many businesses to open, with modifications. Keep reading below and please watch the video above to get an update on what’s happening in the world.
Video Index (with direct links)
0:23 – How drones are helping the fight against Coronavirus
1:20 – California is open for business
2:04 – Update on two popular stimulus bills (Emergency Money for the People and Rent and Mortgage Cancellation)
3:27 – Video sponsor! The Highland Civic Center Plaza for sale
3:54 – Landlords struggling with May rent collections – what to do
Drones to the Rescue
There’s so much bad news in the world right now, especially about retail, so I thought I’d talk about something positive and cool – drones! Drones are being used today to deliver personal protective equipment to rescue workers in North Carolina, and will be used to deliver medications to the country’s largest retirement community in Florida.
California Reopening
On Monday, governor Newsom announced that California would be entering phase 2 of the plan to lift restrictions on businesses opening as soon as this Friday, May 8.
Businesses that would be allowed to open are considered low risk retail, including clothing bookstores, music, toys, sporting goods stores, and florists can be open for customer pickups. However, offices, shopping malls, and sit down dining restaurants didn’t get the green light to open. Unfortunately barber shops have still been ordered to stay closed so we’ll all have to let our hair grow out just a little bit longer.
May’s Rent Collection
It’s now early May, and many landlords have been struggling with May’s rent collections The ones I’ve spoken to are seeing worse collections than what they saw in April. I’ll reiterate some of the things I mentioned a month ago.
If your tenant, whether it’s a mom-and-pop or a corporate tenant is asking for rent relief, you should ask then to provide information supporting their need for rent relief. Have they applied to the government’s EIDL and PPP programs? What creative things are they doing to try to make some money in the meantime? Have they shown you their financials for 2019 and 2020?
If they have demonstrated a need for rent relief, and if you’re offering to give it to them, have them give up something in exchange. A few examples are: This could be for them to extend their lease term, exercise an option early, have them pay back deferred rent at a later date, removing exclusivity or co-tenancy clauses, or eliminating future options.
Best of luck in working out a deal that works for both parties.
Will you be going shopping this weekend? Let me know in the comments below or shoot me an email!
Stay safe!
Connect with me here:
Website: https://mikelincre.com
LinkedIn: https://www.linkedin.com/in/MikeLinCRE
Twitter: https://twitter.com/MikeLinCRE
Email: mike@progressiverep.com
