Property owners are generally reluctant to offer relief because of accounting rules, effect on ability to get loans
President Trump threatens to permanently pull funding to the World Health Organization; The White House physician explains why the president is taking hydroxychloroquine; Moderna’s preliminary results raise hopes for a vaccine. WSJ’s Jason Bellini has the latest. Photo: Denis Balibouse/Reuters
Human nature. So many people that can pay rent are not. They are simply leveraging the situation to their advantage
Unless there is fraud, illegality, or unequal bargaining power - not the case here - courts should not renegotiate a better deal for either side of a contract. That is the common law.
Maybe the tenants could afford rent if they stop buying so much.... Oh wait.
Raise the rent on Chipotle, hopefully they’ll go broke and go away.
And small shops are stuck in their leases with bullying landlords. Loose years of hard work and lifetime of savings.
COVID is an adaptable all-purpose virus. It can be used to reduce rent, focus attention on racism and global warming, impact elections, and allow teachers to be paid without students in class. Truly an impressive little virus.
Imagine regular people telling their landlords and mortgage 'we expect that you will partner with us in this difficult time'.
If they are “partners” now in the bad times then they should get “partners” distributions and dividends for all the good times. This is a BS move.
JeffMacke I would only accept revenue share as the new lease. Otherwise GTFO
I go to Starbucks often and would like to partner with them. I will hereby be paying 50% of my coffee bill. Thanks “partner!”
Uhhh what about the millions of people without jobs?
they should sell hotdogs to make better profits!
Good Luck... They gonna need it....
I know businesses are now considered people now but do you ever write stories about real human beings ?
JeffMacke Ruthless business posturing. The land lords going to kick out these amazing businesses? No. Absent a pandemic, these are the perfect tenants. Starbucks and others have the perfect leverage. LLs will buckle and compromise.
Hope this renegotiation is available to small businesses and renters as well.
Life’s a bitch, work it out. Your all over paid! FACT
Fcuk them.
What gets me is how fragile the economy is. Surely these big chain stores could actually OWN there places of business? Or at least be halfway to paying them off. Surely that is the goal of a business. The whole think is a big ponzi scheme i think.
billpostmus Like every other tenant. Why is this news?
Most of these landlords are (ahem) Democrats...
part of the problem are property taxes that greedy counties are demanding. so property owners are not exactly in a position to lose money.
Why do companies like Starbucks need rent relief? Haven’t they been making money for the last many years? Did the landlords get extra rent money then? Much like us taxpayers being asked to bail out other companies because they didn’t make for a few months!
Every company with a lease is going through this same process.
Disgusting on starbucks because they’re one of the lucky few that have been open. Walgreens, an essential business, sent out a letter threatening to close locations due to covid unless rents were renegotiated! Are they serious? Shame on them for taking advantage of a crisis!
Lol no.
Fume at your governor
The ripple of effects of COVID-19 will be felt for years to come...
American families are using all their incomes to pay for rents. It is time to elect a government that is ready to cut rents by 75%.
The domino-effect begins. Clock now ticking with less than 60 days to fix, patch, bolster the economic and humanitarian disaster waiting quietly, just around the corner. No amount of govt stimulus will fill in this hole. It will require compromise 'till-it-hurts' of EVERYONE.
compare cost and revenue of finding a new tenant and possible vacancy period, if better to get new tenants tell them to bugger off
Anybody else wondering whether this, along with residential rent strikes, might escalate into demands for major land ownership reform, redistribution, or nationalization, both here and abroad? Could it get that wild?
Ya the line around Starbucks isn’t long enough BS.
Wow, of course landlords should fume, chipotle market cap is $29 BILLION and Starbucks is $90 BILLION and they don’t want to pay rent,..... Really Awwww... they’re so poor lol
I sure hope Starbucks does not declare bankruptcy
starbucks and moby dick are on a rent strike
Why not? If everyone else is just not going to pay rent why should they?
Can I, a nonmega-corporation, have that too?
I would say $%& YOU to Starbucks ChipotleTweets shakeshack
My chipotle in Orlando hasn’t had any issues. ChipotleTweets seems like curbside has even increased production and productivity. Free guac on the app helped too.
The beginning of a complex game of moral hazard. Businesses can't pay back rent with reduced revenue and low cash flow. Landlords can't tell their investors that they're losing money because of unpaid rent. Who takes the hit?
In NYC? They can choose prime 5th Ave and broadway spits for a song. Just walk from 20th to 30th streets... 1 in eveey 3 or 4 storefronts are for lease. Landlords might wanna take what tbey can get. A bird in hand...
Bleed them try don't give them an inch! Landlords worked very hard to have this prime property. Move to cheaper location or cancel lease.
Why a landlord shoud be paying Starbucks bills? In other words, who deserves to earn money, landlords or Starbucks?
Landlords can just suck it up. They’ve been screwing people forever. Now it’s time for them to give back.
Uh hey Starbucks ChipotleTweets shakeshack care to share some insight on how to do that?
Fuck that. They have money. Demand payment in full, or throw them out.
But are they big, or cool, or related enough to get the tick to be allowed to trade?
If chipotle goes..ChipotleTweets don’t leave us
The absolute nerve!
Given how efficient they avoid tax, surely they will get out of paying rent too. LatteLiberals Lav_
Sell some stocks...
Rich companies are expecting rent reprieves and unconditional deferrals.
Not happening.
Hmmm publicly traded companies can always sell stock to pay there rent, why aren’t you? Starbucks shakeshack ChipotleTweets
1000$ stocks cant pay their rent what a fcking joke peak fraud
Who is helping out the property owners? Is the assumption they own those buildings outright?
Good luck with that! My office space is in a medical building by HTA and then had the Urgent care become a COVID testing site... no discount, no support- big companies taking advantage!
As much money 💰 that these people have made---WTF. THE WORKER NEED RO RENEGOTIATE THEIR PAST PAY PLAN WITH THES CROOKS:
Yeah me too
Those chains have plenty of money to pay their bills
As they should
Bullshit....raise the price on your already overpriced sledge or go out of business.... You know, like so many small businesses have been forced to do
Not a different story in India!
Only now?
Starbucks makes 2 million a day.
Can customers renegotiate the price of their coffee?
10yyyyyy01 explains it all.
Starbucks drive through has been 50% longer than normal. Let’s see their P&L statement for 1st quarter
Ummm, no. Corporate has the money to pay those rents. Stop being so fucking greedy my goodness
I never thought Starbucks might be in danger
Cancel contracts that don't work for you, refuse to pay rent when profits are being impacted - such insights into how big business is done in the United States. Imagine if every small business owner behaved this way?
Maybe they should have stopped drinking five dollar coffee every morning they could afford their rent.
It is really in the landlord's best interest to renegotiate w bigger tenants. If you don't, then you risk an empty space with no business there for X months. It hurts the landlord in the short term, but it is a safer play in the long term.
Corporate office needs to support the franchises.