According to the group, Partnership for New York City, in addition to national chains nearly one third of Manhattan’s 230,000 small businesses are likely to close for ever as restaurants and bars struggle to pay rent with social distancing sapping business. So far, landlords are trying to avoid price cuts as they wait for a rebound. Still, they’re losing patience amid pressure to make their own debt payments. Lawsuits are piling up as many tenants continue to withhold rent payments.
Vornado Realty Trust, a major New York landlord, wrote off $36 million in rent, including for the lease on JC Penney’s store at the Manhattan Mall. While some landlords are reaching deals to defer rent, some defaulters are refusing to leave. Tenants of Boston Properties Inc have refused to give up their space despite not paying rent for months. Lack of new leases could force landlords to turn to pop-ups, flexible lease arrangements and payment deferrals to find tenants, according to Jay Norris, CEO of Guesst, a digital retail platform.
