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Ways to Reduce Your Rent Expenses During a Crisis

Ways to Reduce Your Rent Expenses During a Crisis

Are you a commercial tenant struggling to pay rent and need to know your options? Attached is an article showing 5 proven ways to reduce your rent expenses during crisis events like COVID-19.

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(1) Rent Deferment

This is when a landlord allows tenant to skip paying an entire or partial amount of the rent due. Your landlord may ask for the following:
• Updated financials: P & L, Balance Sheet, etc
• Something showing financial impact from COVID-19
• Explanation letter of what will happen if the deferment does not take place

(2) Renegotiation (Blend-and-Extend)

When a landlord lowers your monthly rent by you signing a longer lease and amortizing the rent difference over the new term of the lease

(3) Substitution of Premises

When a landlord allows you to move to a different space in their portfolio that is smaller or lower priced than the current one you are occupying

(4) Relocation

If you are on a month-to-month lease or your landlord will allow you to break your lease early, you can relocate to a more affordable property

(5) Sublease

If you have excess space, you can hire a broker like myself to find you a subtenant to rent a portion of your space. This helps you generate more income and lower your rental expense. We can also help you sublease your entire space.

Even after outlining all the information above, investing in CRE can still seem daunting. That’s why the Leveraged CRE Investment Team at Commercial Properties, Inc. is here to help you achieve your investment goals. Contact us at (480) 330-8897 or send us an email at request@leveragedcre.com.


Need help on how to get started investing in commercial real estate? We got you covered! We prepared a free e-book that will serve as your guide to achieve your long-term business goals or obtain that property you’ve always been dreaming of!


Phill Tomlinson is a commercial real estate broker with Commercial Properties, Inc. (CPI) in Scottsdale, Arizona, and owner of the Leveraged CRE Investment Team specializing in investment sales and tenant/landlord representation in the Phoenix and Scottsdale submarkets. Phill applies over 21 years of experience in the Real Estate industry helping investors and owners maximize their returns.


Bookmark www.leveragedcre.com to learn more about the Commercial Real Estate market and keep informed of relevant real estate strategies designed to maximize your income property investment results. Connect and follow Phill on Social Media at sm.leveragedcre.com/smplatform. #LeveragedCRE