Residential evictions have once again been stayed by the government as the Biden administration extended the foreclosure and eviction moratorium for pandemic relief. While recent announcements promise more federal government aid is on the way for small business, commercial tenants may not have the same extended reprieve.
State governments have largely been in control of regulating commercial evictions and foreclosures. The actions have been a mixed bag, with some taking measures to protect small business from evictions (more specifically those related to missing payments), while in other state measures focus on easing the way for landlords to evict delinquent tenants.
Here’s just a small slice of the changes happening countrywide:
In New Jersey, the state Supreme Court took express measures to help struggling landlords. Landlords whose own business is in danger due to missed payments by the tenant in question now have grounds to file an Order to Show Cause—the first step in a commercial eviction.
New York’s current moratorium on commercial evictions will expire in a matter of days. While it is reported that Governor Cuomo has “no desire” to extend the current ban, legislation is in the works to forestall commercial evictions and provide small businesses protection until early May.
Hawaii is heading towards passing small business protection legislation. If passed, it would not only forestall evictions, but would also protect tenants from paying back rent to landlords and give tenants more leeway in terminating a lease without penalty.
So what does all of this mean for commercial real estate moving forward? Will commercial eviction rates continue to rise, even as COVID vaccination rates increase?
Reports show over 100,000 businesses have closed over the past year, and more will follow in those footsteps. However, with large scale federal aid and state governments looking to protect small businesses, the number of evictions may only see small increases in 2021.
Landlords looking to protect their own businesses will still have access to evict problem tenants, even amidst protective measures. But moving forward, it’s never been more important to choose a healthy, thriving tenant that has proven their resiliency through the pandemic.
Retailsphere can help you find the best tenant match, and the platform gives the detail you need to make the wisest decisions for your business. Schedule your Free demo today to see Retailsphere in action.