Today marks the first rent day since the coronavirus pandemic has ravaged the country’s economy. Landlords across New York are bracing for a huge drop in rent payments. Governor Cuomo finally acknowledged that he does not intend to forgive residential rent for cash-strapped tenants. The 90-day ban on evictions remains in place.
- One caveat for retailers and restaurants: The stimulus package does help provide small businesses with loans to pay rent, but will only become forgivable for companies who maintain their payroll — which many restaurants can’t do because they’ve slimmed down or temporarily closed. Restaurant chain The Cheesecake Factory sent a letter to the landlords of its 300 locations in the United States stating that it won’t pay rent tomorrow.
- Update from the White House: Dr. Birx projected the U.S. could face 100,000 to 240,000 deaths from the pandemic, as President Trump warned Americans to brace for an unprecedented crisis in the days ahead.
- There are still mortgages to pay: Shares of several commercial mortgage REITs trade at more than 50% below their late-February levels. Apollo Commercial Real Estate Finance’s stock is down 60% since Feb. 24. The shares of Starwood Property Trust and Blackstone Mortgage Trust are down 56% and 51%, respectively, during the same period, WSJ noted.