It's no secret that the coronavirus pandemic has hit New York City's restaurants the hardest. At the beginning of the pandemic, when NYC was the epicenter, all restaurants were forced to close down. Some were able to keep their doors open with takeout, but the amount of spending New Yorkers were doing at dining establishments diminished significantly. And by September 2020, nearly 90% of restaurants in NYC had reported they were unable to pay their total rent amount in August. When tenants cannot pay their rents in full, landlords cannot pay their mortgages and other expenses. When this happens, landlords face foreclosure, tenants are booted out of the commercial space, and more and more people are out of jobs.
The Link Between Restaurants and New York Real Estate
Commercial real estate is entirely dependent on the business paying their rent, and restaurants, in particular, are reliant on their potential diners' foot traffic. Since the coronavirus has shut all of our lives down, restaurants in New York have had an unexpected slowdown in demand, and in some cases, shutdown. There is little to no demand for new spaces, so even if the tenant was evicted, there are fewer and fewer businesses ready to take up their spot. This vicious cycle creates quite the conundrum, and being able to renegotiate rents or exit your lease will be key in this market.
How an Experienced Real Estate Attorney Can Help
If you are a restaurant that can't pay its rent or a landlord who can't pay their mortgage, we at Monachan Law are here to help. The impact suffering restaurants have on New York's real estate is heartbreaking. You have worked so hard for so long, and now because of a pandemic that is outside of your control, that hard work is being washed away. Let us help you navigate this tricky reality; you don't have to go through it alone. We will work tirelessly to review your situation and come with a strategy that works. Contact us today to schedule a consultation.