Services > Emergency Rent Relief Program
WHAT ARE YOUR OPTIONS FOR RENT RELIEF DURING A GLOBAL CRISIS?
Landmark's Emergency Rent Relief Program is already being leveraged to great success in response to COVID-19 by many multi-national organizations in Canada and the United States
EMERGENCY RENT RELIEF PROGRAM
WHICH OPTION IS BEST?
There are important considerations for each of these options that must be factored into your decision making process. Furthermore, each option can be introduced or structured in different ways. The key to successfully implementing any rent relief program is:
This is critical as it will impact every aspect of the approach you take with the landlord. For example, do you want immediate rent relief at any cost, or is the priority to reduce costs while keeping your lease in good standing and maintaining an image as a good corporate citizen?
DETERMINING LIMITING FACTORS
You must identify what restrictions exist that may influence the option you pursue. For example, your corporate policies may prevent you from making any long term lease commitments. This would change which path to follow and/or how you pursue it.
DEFINING THE SCOPE
Is this an initiative that you want to apply to your entire portfolio, to certain geographic locations, strategic locations, or only to specific business units?
CRAFTING YOUR MESSAGE
Often it’s not what you say but how you say it that really matters. This applies to any communication with your landlord, especially during a crisis. Keep in mind they are vulnerable too, so delivery of your message could be the difference between success or failure in the discussion.
PROTECTING YOUR INTERESTS
No matter which option you choose, a lease amendment or some form of agreement will need to be put in place with your landlord. This needs to be well drafted to ensure repayment options are clear, no loopholes exist that can cost you in the future, and you should also build in some flexibility because no one really knows how this pandemic will play out.
NOT SURE WHAT TO DO NEXT?
NOT ENOUGH BANDWIDTH TO EXECUTE?
Designed and implemented following the financial crisis in 2009, Landmark’s EMERGENCY RENT RELIEF PROGRAM is already being leveraged to great success in response to COVID-19 by multi-national organizations in Canada and the United States.
WHAT IS THE ERRP?
The immediate mobilization of a dedicated team to reduce real estate costs as quickly as possible.
WHO IS ON YOUR DEDICATED ERRP TEAM?
Company Principal / Owner
Real Estate Lawyers
Master Urban Planners
Establishing priorities, limiting factors, scope (entire portfolio vs single location vs select locations).
Gathering & Organizing lease information and landlord contact info into tracking and reporting system.
Mobilizing the ERRP team and engaging landlords.
Negotiating rent relief terms in accordance with established priorities.
Drafting the appropriate legal documentation for signature by all parties.
HOW MUCH DOES IT COST?
Payment options are flexible but the most common method is on a contingency basis (a percentage of savings/reduced cost) – meaning Landmark is only compensated if we are successful in reducing your costs.
Landmark Advisory Services Inc, is a commercial real estate consulting firm, specializing in the representation of Corporate Tenants and Occupiers.
As an external real estate department, Landmark has acted as an extension of its clients’ businesses for more than 30 years.