Attorney Steve Ruby West Virginia recently discussed Starbucks’ recent demands for landlords to lower rent for tenants in the coming months.
Steve Ruby West Virginia is an esteemed attorney in the state. He’s an expert in landlord-tenant relationships and has explained that such relationships have seen a lot of difficulties as a result of the coronavirus pandemic. Steve Ruby West Virginia stated that tenants are seeking relief from rent payments while landlords are finding it difficult to pay mortgages, especially in areas where rent has been relieved. Ruby recently discussed the plea Starbucks has made asking landlords to lower rent for store tenants.
Starbucks has asked landlords to lower or relieve rent for at least the coming year. Steve Ruby West Virginia explained Starbucks executives claim stores are suffering as a result of social distancing measures and general fear of contracting the virus. Roz Brewer, Starbucks Chief Operating Officer, stands behind the statement requiring landlords to make adjustments to lease terms to help store owners.
Steve Ruby West Virginia stated that the claims are partially due to the staggering restaurant industry. It is expected that the restaurant industry in America will take a roughly $225 billion hit in the coming three months. He added that officials at Starbucks state the economic and psychological effects of the virus aren’t going away any time soon and will likely linger for months or years. Starbucks earnings are down nearly 50 percent from 2019.
Steve Ruby West Virginia stated that Starbucks is one of the largest chains in the country. Amazingly, its stores have stayed current on rent despite the complete closure of roughly half of Starbucks locations in March and April. Attorney Steve Ruby West Virginia added that despite such hardships, rent relief is a complicated topic.
“Rent relief is a concept that typically assumes landlords own the property,” Steve Ruby West Virginia said. “Unfortunately, many of these landlords have leases with the bank, partnerships, and other debts to pay.”
Steve Ruby West Virginia stated that relieving rent can result in serious damages to mortgage and commercial property markets. Keeping this money out of landlords’ hands means they’re unable to pay their bills as well. This can result in foreclosures, which may force the stores in such locations to close or move as well. Attorney Steve Ruby West Virginia explained that the ripple effect caused by rent relief can create even more difficulties, and ultimately, harm the overall economy of an area even more.
“We’ve haven’t seen a financial crisis quite like this one in our lifetimes,” Steve Ruby West Virginia finished. “It’s going to take a lot of trial and error to find solutions that work fairly for landlords as well as their tenants. We do believe restaurants will be able to pay their rent again in the future, and the real estate market will bounce back. We just don’t know when.”