With stores shuttered, struggling retailers are skipping rent and asking for concessions, while landlords are demanding payment and having their own tricky conversations with lenders, Bloomberg News reported. So far this month, some mall owners and other retail landlords collected as little as 15 percent of what they were owed, according to one estimate. And it’s expected to get worse, with more than $20 billion in rent payments coming due in May. “It’s all over the map what’s happening out there,” said Tom Mullaney, a managing director in restructuring at Jones Lang LaSalle Inc. “More and more defaults are coming in every single day.” Companies across the U.S. — from small mom-and-pop operations to giant corporations — have missed April payments or sent out relief requests citing store closures because of the pandemic. Landlords have been pitching rent deferment, saying tenants can make reduced payments now as long as they pay the balance at some point. Some businesses are pushing back on that option and asking for rent cuts even after stores are open again. U.S. retail landlords typically collect more than $20 billion in rent each month, according to data from CoStar Group Inc. So far, April rent collection has ranged from 15 percent to 30 percent for landlords with higher concentrations of shuttered businesses, according to an estimate from brokerage firm Marcus & Millichap. Landlords, who are facing their own debt defaults, are getting frustrated. Some are complaining that large corporations are using the crisis to skip out on rent. Others say that they’re not responsible for bailing out tenants and that the federal government or insurance companies should cover the costs instead.
