Skip to content
  • About Us
  • Foundation
  • News & Insights
  • Member Directory
  • Job Board
  • Sign In
  • Join
Home > Thought Leadership > Navigating rent for landlords and tenants in the face of COVID19
Boston Chamber
  • Events
        • Events

          • Overview
          • Events Calendar
          • Chamber Awards
          • New Chamber Event Series
        • ...
          Pacesetters
          Doing Business with Columbia Construction

          This virtual event gives small business owners the chance to hear directly from procurement officers about opportunities to work with them.

          05/29/2025

          12:00pm - 1:00pm

          Virtual

          arrow-go
          Read More
        • ...
          City Awake
          Art of Connection: An Evening at the Museum of Fine Arts, Boston

          Join us for an exclusive networking event at the Museum of Fine Arts and enjoy self-guided tours of John Wilson and Van Gogh, showcasing the deep bond of family, friendship, and community.

          06/05/2025

          5:30pm - 8:30pm

          Museum of Fine Arts

          arrow-go
          Read More
        • ...
          Series
          Transportation First | State of the Airport

          The Transportation First Series offers a platform to discuss the challenges faced by our region, with the input of experts and changemakers.

          06/12/2025

          2:45pm - 4:30pm

          Hybrid | Greater Boston Chamber of Commerce

          arrow-go
          Read More
  • Learning & Development
        • Learning & Development

          • Overview
          • Call for Nominations
          • Insights
        • Transformational DEI Certificate

          This program is in redevelopment. Click this page for DEI resources.

          Read More
          Women’s Leadership Program

          Our Women’s Leadership Program enables you to take your leadership to the next level by arming you with the most in-demand leadership toolkit.

          Read More
          Boston’s Future Leaders

          Our Boston’s Future Leaders (BFL) program provides emerging leaders with a socially conscious and civically engaged leadership toolkit, as well as the opportunity to apply their knowledge through experiential assignments.

          Read More
          Authentic Professionalism for Early Career Professionals

          Join us on June 12 for a highly interactive virtual workshop with Strategic Career & Leadership Coach Carole-Ann Penney.

          Read More
  • Economic Inclusion
        • Economic Inclusion

          • Overview
          • Pacesetters
          • Resources
        • ...
          Economic Inclusion
          City Awake

          City Awake empowers young professionals in a variety of ways that encourages these rising leaders to stay invested in the region’s future success.

          arrow-go
          Read More
        • ...
          Economic Inclusion
          Pacesetters

          We are developing an ecosystem of corporations and partners with the influence and buying power to transform economic inclusion for minority business enterprises (MBEs).

          arrow-go
          Read More
        • ...
          Small Business
          Small Business

          Small businesses are the backbone of the Boston economy. Learn more about the resources available through the Chamber.

          arrow-go
          Read More
  • Policy & Impact
        • Policy & Impact

          • Overview
          • Leadership Councils
          • Amicus Advisory Board
        • GET INVOLVED IN OUR POLICY FOCUS AREAS

          Business Climate
          Read More
          Climate & Energy
          Read More
          Health Care
          Read More
          Housing & Development
          Read More
          Talent
          Read More
          Transportation
          Read More
  • Our Networks
        • GBCC’s Networks

          • Overview
        • OUR NETWORKS

          Small Business

          Small businesses are the backbone of the Boston economy. Learn more about the resources available through the Chamber.

          Read More
          City Awake

          City Awake empowers young professionals in a variety of ways that encourages these rising leaders to stay invested in the region’s future success.

          Read More
          BIMA

          BIMA (the Boston Interactive Media Association) serves a vibrant community of like-minded professionals from agencies, brands, publishers, and ad-tech companies with business interests in the New England market.

          Read More
          Women’s Network

          For over 30 years, the Chamber’s Women’s Network has connected female professionals of all background and career levels. Today, our Women’s Network is the largest in New England, strengthening the professional networks of women each year.

          Read More
          Massachusetts Apprentice Network

          The Massachusetts Apprentice Network convenes employers, training providers, and talent sources interested in developing and implementing apprenticeship programs in occupations across industries and statewide in fields such as tech, advanced manufacturing, healthcare, financial services, and more.

          Read More
          Pacesetters

          We are developing an ecosystem of corporations and partners with the influence and buying power to transform economic inclusion for minority business enterprises (MBEs).

          Read More
  • Membership
        • Membership

          • Overview
          • Membership Benefits
          • Membership Levels
          • Member Stories
          • Request a Meeting
          • Join Today
        • Chamber Membership
        • About Us
          Our Impact

          Explore our mission and values to better understand how we are leading the business community forward.

        • Greater Boston Chamber of Commerce
        • Membership Directory
          Not sure if you’re a member?

          Our member directory is your resource to discover, connect, and engage with Boston’s businesses from every industry and sector.

        • For our members

          • Member Resources
          • Member Deals
          • Sponsorship Opportunities
          • Connect with your Member Services Rep
          • Sign In
  • join
Bostonchamber
Boston Chamber
  • Events
        • Events

          • Overview
          • Events Calendar
          • Chamber Awards
          • New Chamber Event Series
        • ...
          Pacesetters
          Doing Business with Columbia Construction

          This virtual event gives small business owners the chance to hear directly from procurement officers about opportunities to work with them.

          05/29/2025

          12:00pm - 1:00pm

          Virtual

          arrow-go
          Read More
        • ...
          City Awake
          Art of Connection: An Evening at the Museum of Fine Arts, Boston

          Join us for an exclusive networking event at the Museum of Fine Arts and enjoy self-guided tours of John Wilson and Van Gogh, showcasing the deep bond of family, friendship, and community.

          06/05/2025

          5:30pm - 8:30pm

          Museum of Fine Arts

          arrow-go
          Read More
        • ...
          Series
          Transportation First | State of the Airport

          The Transportation First Series offers a platform to discuss the challenges faced by our region, with the input of experts and changemakers.

          06/12/2025

          2:45pm - 4:30pm

          Hybrid | Greater Boston Chamber of Commerce

          arrow-go
          Read More
  • Learning & Development
        • Learning & Development

          • Overview
          • Call for Nominations
          • Insights
        • Transformational DEI Certificate

          This program is in redevelopment. Click this page for DEI resources.

          Read More
          Women’s Leadership Program

          Our Women’s Leadership Program enables you to take your leadership to the next level by arming you with the most in-demand leadership toolkit.

          Read More
          Boston’s Future Leaders

          Our Boston’s Future Leaders (BFL) program provides emerging leaders with a socially conscious and civically engaged leadership toolkit, as well as the opportunity to apply their knowledge through experiential assignments.

          Read More
          Authentic Professionalism for Early Career Professionals

          Join us on June 12 for a highly interactive virtual workshop with Strategic Career & Leadership Coach Carole-Ann Penney.

          Read More
  • Economic Inclusion
        • Economic Inclusion

          • Overview
          • Pacesetters
          • Resources
        • ...
          Economic Inclusion
          City Awake

          City Awake empowers young professionals in a variety of ways that encourages these rising leaders to stay invested in the region’s future success.

          arrow-go
          Read More
        • ...
          Economic Inclusion
          Pacesetters

          We are developing an ecosystem of corporations and partners with the influence and buying power to transform economic inclusion for minority business enterprises (MBEs).

          arrow-go
          Read More
        • ...
          Small Business
          Small Business

          Small businesses are the backbone of the Boston economy. Learn more about the resources available through the Chamber.

          arrow-go
          Read More
  • Policy & Impact
        • Policy & Impact

          • Overview
          • Leadership Councils
          • Amicus Advisory Board
        • GET INVOLVED IN OUR POLICY FOCUS AREAS

          Business Climate
          Read More
          Climate & Energy
          Read More
          Health Care
          Read More
          Housing & Development
          Read More
          Talent
          Read More
          Transportation
          Read More
  • Our Networks
        • GBCC’s Networks

          • Overview
        • OUR NETWORKS

          Small Business

          Small businesses are the backbone of the Boston economy. Learn more about the resources available through the Chamber.

          Read More
          City Awake

          City Awake empowers young professionals in a variety of ways that encourages these rising leaders to stay invested in the region’s future success.

          Read More
          BIMA

          BIMA (the Boston Interactive Media Association) serves a vibrant community of like-minded professionals from agencies, brands, publishers, and ad-tech companies with business interests in the New England market.

          Read More
          Women’s Network

          For over 30 years, the Chamber’s Women’s Network has connected female professionals of all background and career levels. Today, our Women’s Network is the largest in New England, strengthening the professional networks of women each year.

          Read More
          Massachusetts Apprentice Network

          The Massachusetts Apprentice Network convenes employers, training providers, and talent sources interested in developing and implementing apprenticeship programs in occupations across industries and statewide in fields such as tech, advanced manufacturing, healthcare, financial services, and more.

          Read More
          Pacesetters

          We are developing an ecosystem of corporations and partners with the influence and buying power to transform economic inclusion for minority business enterprises (MBEs).

          Read More
  • Membership
        • Membership

          • Overview
          • Membership Benefits
          • Membership Levels
          • Member Stories
          • Request a Meeting
          • Join Today
        • Chamber Membership
        • About Us
          Our Impact

          Explore our mission and values to better understand how we are leading the business community forward.

        • Greater Boston Chamber of Commerce
        • Membership Directory
          Not sure if you’re a member?

          Our member directory is your resource to discover, connect, and engage with Boston’s businesses from every industry and sector.

        • For our members

          • Member Resources
          • Member Deals
          • Sponsorship Opportunities
          • Connect with your Member Services Rep
          • Sign In
  • join
  • About Us
  • Foundation
  • News & Insights
  • Member Directory
  • Job Board
  • Sign In
  • Join

Navigating rent for landlords and tenants in the face of COVID19

June 3, 2020

When the coronavirus (COVID-19) pandemic first began in the United States, the real estate industry initially thought any disruption would be temporary – just two or three months to “flatten the curve”.

With mounting job losses, big name bankruptcies, and continued infections, the COVID-19 pandemic will have devastating effects on the global economy for the rest of the year and likely much longer. As many states start the reopening process, Massachusetts is taking a conservative approach. And even as Governor Charlie Baker begins the transition from the statewide shutdown to a gradual reopening process, Massachusetts companies will not quickly return to business as usual. Commercial landlords and tenants will be forced to make difficult decisions to adapt to the changing real estate and business landscapes. Since rental obligations are one of the biggest fixed costs for any business and the primary source of income for a property owner, landlords and tenants must start to seriously dialogue about modifying their leases to help each party improve the prospects of their respective businesses surviving the pandemic. This article will cover several considerations landlords and tenants should discuss on the topic of rental payments during the COVID-19 pandemic. 

1.         Modifying Rent Payments

Many tenants, especially in the retail and manufacturing space, have not been able to conduct normal business operations during the pandemic. With the flow of business income screeching to a halt, companies are simply unable to meet their rental obligations. Over the last two months, landlords and tenants have discussed modifying rent obligations under leases in the following ways:

  • Rent Deferral – Deferral of rent payments for a short period (e.g. one to three months). A tenant could repay the deferred amount by spreading out smaller payments during the remainder of the term of the lease. Alternatively, the lease term could be extended for the same length as the rent deferment and the tenant could repay the deferred amount during the newly created extension period.
  • Rent Abatement or Rent Reduction – Payment of reduced rent or a rent abatement for a short period. The reduced or abated rental amount could also be repaid by the tenant in the same manner as described for a rent deferment.
  • Payment of Taxes and Operating Expenses Only – Payment of only a tenant’s proportionate share of the building’s operating expenses and assessed taxes for a short period. The payment of standard rent payments could be abated or reduced during this period.
  • Percentage Rent – Converting the monthly payment of standard rent payments for a retail tenant into monthly payments which are a percentage of a retail tenant’s actual gross sales at the leased premises. However, this option is not practical for an office lease.

Even if a landlord is amenable to any of the above suggestions, tenants should be aware that a landlord may need to obtain the consent of its lender for any lease modification affecting the payment of rent.

2.         Returning to Work – A Phased Process

As Massachusetts begins to reopen, some landlords may feel inclined to push tenants back into paying “full” rent. However, business will not immediately return to normal for several reasons. First, Governor Baker has made clear that the reopening process will be gradual and in several phases. There will likely be initial occupancy limits for retail and office premises alike. We can look to the limits imposed within other states to get a sense of what is in store for Massachusetts — most mandated occupancy limits are in the 25% to 50% range depending on the type of business. Second, employees who have become comfortable working from home may not want to return to work. Some employees may still harbor health and safety concerns, including the risk of virus transmission associated with the use of public transportation. Employees may also feel less productive in an office environmental with occupancy limitations and contact limitations. It will likely be easier and more comfortable and productive to work from home until the threat of COVID-19 subsides. Finally, customers will not come back right away. Many consumers will share the same fears over health concerns and a potentially unappealing in-person consumer shopping experience. Shopping malls and retail establishments are not likely to see normal foot traffic for several months at the earliest. For these reasons, landlords and tenants should discuss phasing in a return to full rental obligations just as the Commonwealth phases in the reopening of the economy.  

3.         Thinking Ahead — A Recurrence in the Fall?

Although Massachusetts and other states have made much progress to flatten the curve of new infections ahead of a predicted decrease in the infection rate during the summer months, most health professionals anticipate a second wave of infections in the fall and winter months. This was a lesson learned during the 1918 flu pandemic in which the second wave in the fall of 1918 proved to be more lethal than the initial wave. As such, landlords and tenants should consider negotiating a mechanism to deal with rental obligations in the event of another partial or full shutdown if there is a recurrence of the pandemic conditions. 

Conclusions

The rent issues described in this article are by no means an exhaustive list of what landlords and tenants should discuss considering the COVID-19 pandemic. Regardless of the issue, early and continued communication between landlords and tenants is critical for the parties to navigate the ever-changing economic landscape. Open dialogue and cooperation will be the best path to negotiating a mutually beneficial solution to get through the pandemic and eventually return to business as usual. 

265 Franklin Street
Suite 1701
Boston, MA 02110
Get Directions
Contact us
  • Events
  • Learning & Development
  • Economic Inclusion
  • Policy & Impact
  • Our Networks
  • Membership
  • join
  • About Us
  • News & Insights
  • Member Directory
  • Job Board
  • Sign In
  • Privacy Policy
  • Terms & Conditions

© 2025 Greater Boston Chamber of Commerce. All Rights Reserved.

Popular Resources

  • Small Business  
  • News & Insights  
  • Member Resources  
  • Small Business  
Close