Local companies operating Sendai and buildings, tenant rent reduction exemption, “Shared Pain” also collapses

Local companies operating Sendai and buildings, tenant rent reduction exemption, “pain collapse” including collapse

A downtown area that is quiet after receiving an emergency declaration. Building rent is heavy for tenants = Kokubuncho, Aoba-ku, Sendai City

The move to reduce tenant rent is spreading to local businesses that operate commercial buildings in downtown Sendai. Although it is a response that takes into account the impact of the spread of the new coronavirus infection, the management side is also suffering due to reimbursements to financial institutions. There is a need for early public support as it can lead to a “collapse” situation.

Kanesa Fujiwara (Sendai City), a liquor and real estate wholesaler, has around 270 tenants in 16 owned and managed buildings in Kokubuncho, the entertainment district in the Tohoku region, with a 50% rent in May and 30% in June. In July, 20% will be exempt.
Many tenant restaurants are closed, and about 10 have already decided to move out. Sales of alcoholic beverages, including restaurant sales, fell 30% in March from a year earlier to 70% in the first half of April, and the person in charge said, “We were able to reduce and support the Great East Earthquake. from Japan. “
A real estate agent who owns several commercial buildings in the city center lamented that “the city will die as it is.” Discount the rent for about 50 tenants with a target of 30% for 3 months. The burden of tens of millions of yen will be heavy.
_ Support measures for renting tenants are also being discussed in the Diet. The person in charge of the real estate agent insists that “there are refunds to financial institutions every month, and there is no way to continue if I continue for more than that.” Another real estate agent also complains: “I want at least half of the reduced tax to be completed.”
Large-scale commercial facilities across from JR Sendai Station also have a reduction policy. Spal Sendai, which has been closed since April 18, has halved the minimum deposit for April, which is part of the rent. It plans to continue similar measures in May. “First, we will reduce costs and stop internal events to generate costs,” said deputy store manager Norio Watanabe.
Ebeans (Sendai City) also does not charge rent during the holidays. Director Katsuhiko Sato asks, “Hell even when it’s closed, hell when it opens. What do tenants and self-help buildings believe and abstain from? A quick and compact support measure is needed.”
In addition, Parco (Tokyo) stores like Sendai Parco, which are nationwide, set certain standards and lower taxes.
A Sendai real estate agent said: “For the building owner, removing the tenant is the biggest pain, so we are negotiating a reduction or exemption without waiting for support measures. Although we may temporarily respond by depositing, it will be difficult in about 6 months. “

Monday, May 04, 2020