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Updated over 7 years ago,
Commercial Property - tenant rent concession suggestions
Looking for some help. I own a commercial property in the Smokey Mountains. Tenant is scheduled to pay $3,500 a month in rent. Due to the fires in December he tells me business is way down and is looking for a rent concession. I have no reason to disbelieve him as I believe him to be an honest person. I gave him $2k of rent concessions at the time of the fire. He wants to keep the rent at $3k. I want him paying $3,500. However, I want to find a win-win as I like him and I want him to be successful in his business. I would love it if one day he can buy the building but the only way that happens is for him to be successful in his business. I have considered asking for his financials to show me how much business is down but it's the kind of business that there could be heavy cash so who knows what those show. Any suggestions? Thoughts for a way to structure a deal with some type of variable adjustments? I am not sophisticated with commercial property so would love any thoughts any of you might have. Thank you.