Re: Commercial Lease Rent Bumps

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Posted by john on October 28, 2009 at 14:37:11:

In Reply to: Commercial Lease Rent Bumps posted by Dennis on October 25, 2009 at 21:35:57:

I agree with Ray on the approach. There were a couple of national chains that came knocking on my door for a reduction and I was willing to work with them. Chains have no problem shutting down an unprofitable store, whereas the small merchant tends to hang on. I gave our tenants a 10% reduction for one year after receiving the financials, and then it reverts back to the normal rent. It truly is a partnership and you want your tenant to succeed. You have to admit that this economic downturn is unique time in the history of our lives. My tenants also showed me how they were cutting costs in other areas of their business and it wasn't just the rent payment. This made me feel better about their business practices.

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