As retailers' Paycheck Protection Program funds are running out, Luis Martinez-Monfort, founding partner of law firm Gardner Brewer Martinez-Monfort, expects to see more of them telling their landlord that they're unable to pay rent.
"I feel like PPP has just been a band-aid over the wound, and it's just going to rip off pretty soon," Martinez-Monfort says. "Then you're going to have a festering wound, and you're going to have to deal with that. People are going to resolve the situation by being creative or the bankruptcy system is going to come into play for entities where they can reorganize and restructure."
"Bankruptcies trail the economy," he adds. "When PPP is exhausted, other creative solutions to problems and creative credit issues have to be exhausted before you really go into bankruptcy. And so there's a little bit of a lag."
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
