re: The Cheesecake Factory Tells Landlords They Won’t Be Paying April Rent

So many big shopping centers around this country are leveraged to the point their agreements with their lenders will not allow for reduced terms to their tenants, etc. So when the tenant cannot pay, the landlord is hamstrung by their lender. You are correct when no one in the chain can pay, the whole thing is going to crash. The jump in unemployment is what the jump in bankruptcies will look like. At that point you will have something that is worse than any depression we have ever seen.
UNLESS things get back to some sort of normalcy fairly soon and the biggest banks that hold these biggest loans to the retail property investment firms are able to defer three months or so with the governments help, and then do the same for the tenants.
This is all just commercial, the private housing market is probably similar but I don't really know much about that side.

Sure, ok.

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This is an orchestrated event to consolidate wealth.

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Ok Bernie.

They started being in trouble once Vince Young couldn't hold down an NFL QB spot.

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Yeah, shut the frick up and eat the loss like everyone else and let an established business get back to doing business. Or you can kick me out and roll the dice with an unproven business or perhaps go completely vacant for months. The choice is yours.

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And yet commercial landlords sometimes lack this basic common sense. My friends owned a gym in a shitty strip mall. LL refused to make any improvements to the property and gave my friend a hard time about every little thing while still increasing rent. My friends gym is now thriving at a new location, and 5+ years later the old location is still vacant. I just don’t get it.

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Because they have a clear contract that says they will. They don't get extra rent in good times, and shouldnt get reduced in bad times. If the contract allows for reduced or eliminated rent in times such as this, fine. If cheesecake, or other tenants can't make ti a few months through tough times, that's their fault for not having a solid balance sheet. They should take the loss, not the landlord.

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Disagree, if the landlord wants to kick them out and get nothing for it - so be it. Most competent and savvy real estate investors know how to revisit and work with tenants so they can maximize their revenue for the space.

Kicking tenants out, or forcing them to close due to being too rigid in this kind of scenario (which amounts to the same thing) is going to be a poor long term investment strategy here. Nobody is going to be beating down the doors to open up a new space in most retail locations once this is all over. You lose money on lease up, rent abatement, etc. to get a tenant.

Best just to understand, work out a new plan with the tenant, and move forward with a strong landlord / tenant relationship.

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Disagree, if the landlord wants to kick them out and get nothing for it - so be it. Most competent and savvy real estate investors know how to revisit and work with tenants so they can maximize their revenue for the space.

Kicking tenants out, or forcing them to close due to being too rigid in this kind of scenario (which amounts to the same thing) is going to be a poor long term investment strategy here. Nobody is going to be beating down the doors to open up a new space in most retail locations once this is all over. You lose money on lease up, rent abatement, etc. to get a tenant.

Best just to understand, work out a new plan with the tenant, and move forward with a strong landlord / tenant relationship.

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AND with that......this thread is closed.
I could not agree with you more.