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.