Some National NNN tenants not paying rent during lock-down

[Matthew Loving]

While businesses are closed for social distancing some National NNN tenants have stopped paying rent or are only paying partial rent. Do you have national NNN tenants that are currently not paying rent? If so, how are you handling it?

Personally, I have received letters of notice from 2 national NNN tenants regarding rent. One is a popular national fast casual dine-in restaurant that has notified us that they will not be making rent payments and the other is a popular national quick service restaurant brand that has sent notice that they will only be paying 1/2 rent. Both are well recognized brands run by franchisees that have very large portfolios with many locations. We have not yet responded and are currently discussing our options. Surprisingly, our smaller locally owned commercial renters (hairstylists, re-sellers, boutique restaurants/bars, ..) have found creative ways to generate income and pay their rent. Although they have been able to pay rent so far, I know that it is an incredible strain to do so and that eventually it will become impossible for them to continue to make those payments.

For those of you that own commercial investment properties, what has your experience been like during this national crisis?