Businesses ask for rent abatement, while commercial development remains strong

LEE COUNTY, MISS. (WCBI) – For two months, many businesses across the region were shut down completely or had state-mandated restrictions on how they could operate. Now, some of the businesses have asked landlords for free rent to help make up for the tough times.

However, a local expert said the overall outlook for commercial development remained strong.

Although most businesses have opened, the extended shutdown meant drastic drops in sales and revenue. Now, some businesses are asking landlords for a period of free rent, known as abatement.

“That doesn’t work out for me so we’re trying to help them on the end of the lease,” said V.M. Cleveland.

He is a former retailer, who understood the predicament many businesses were in.

“The banknotes are still the same, the overhead is still the same, we are working with them and we understand, when they shut down, overhead continues,” Cleveland said.

While many retail businesses were hurt because of the extended shutdown, commercial projects were well underway before the coronavirus pandemic hit, and those projects never shut down.

“Now, they’re continuing on, new ones coming out of the ground,” Cleveland said.

One of those was Market Center Number Two, the West Tupelo project would feature a Brooks Grocery, with spaces for restaurant and retail.

Cleveland believed the pre-pandemic momentum the economy enjoyed would continue.

“I think we will bounce back, I think will be stronger than ever, we will be different and do things differently, but the economy will spring back, I think we will be better than ever,” he said.

Cleveland said he wouldn’t be surprised if future lease agreements had a clause about rent abatements or reductions in case of future pandemics.

Cleveland also pointed out that the Paycheck Protection Program passed by Congress can also be used by businesses to pay overdue rent income cases.