Commercial eviction restrictions have officially been extended much like the moratorium’s recently extended at state and national levels for the housing sector. Governor Gavin Newsom signed an executive order las week which will keep pandemic-stricken commercial tenants from being evicted until March 2021.
The initial moratorium was set to expire this month. The new March extensions will continue to allow commercial tenants to worry about public safety protocols instead of rent.
“Offering stability to commercial tenants is key to stemming the financial impacts of the pandemic and a public health issue, allowing businesses to make decisions based on worker and customer health instead of concerns about making rent, Newsom’s order said.”Bisnow.com
It will be interesting to note how the economy pivots over the next few months as we enter the busiest time of year for consumer activity—holiday season.
Many businesses depend on this time of year. As we get closer to December the air of gift-giving will propel people to buy more. This will hopefully mitigate some of the impact that the economy has felt from the fallout of business closures.
Businesses in the State of California have struggled to comeback from state-wide closures, and by extending the commercial moratorium the government is also trying not to add to the pool of businesses who unfortunately won’t make it.
“Closure data from Yelp shows that as of this month, 7,500 businesses in the LA metro area remain temporarily closed, with another 7,500 shuttered for good. San Francisco has approximately 3,300 temporarily closed businesses and at least 2,900 that won’t be reopening.”Bisnow.com
Of those 7,500 businesses in LA that are temporarily closed, how are they paying for rent? A percentage that doesn’t have a strong financial backing or investor will certainly need the moratorium extension so that they can continue to operate at marginal levels, but at least generate some revenue into the holidays as opposed to none.
“The county has said it would extend its safeguards, which apply to unincorporated areas within county lines, on a month-to-month basis as needed. Los Angeles’ anti-eviction measures are in effect for the duration of the city’s local emergency period, which is ongoing.”Bisnow.com