Bedrock Temporarily Waives Rent for Detroit Tenants In Favor of A Percentage of Sales
Also, small businesses and restaurant tenants that received rent abatement for April and May can continue to do so for June.
Bedrock—downtown Detroit’s largest commercial real estate company—has announced rent relief enhancements for a program that initially launched in March in response to COVID-19.
The company has announced that all eligible restaurant, retail tenants may opt to temporarily waive base rent in favor of obtaining a percentage of sales throughout the rest of 2020.
In addition, small businesses and restaurant tenants that began receiving rent abatement for April and May under the program “Bedrock Relaunch” can continue to do so for June, along with inclusion in a small business resource page on bedrockdetroit.com.
The initiative was rolled out in early March when the novel coronavirus pandemic forced social-distancing guidelines across the country, including shuttering many non-essential retail establishments. The program is part of an ongoing effort to help drive traffic back to Bedrock’s retail tenants when these restrictions lift, said company CEO Matt Cullen.
The leases of participants in Bedrock Relaunch will be temporarily amended to reflect:
- All rent and fees waived for the month of June, as a grace period for ramping up their business;
- Base rent waived in favor of paying 7% of gross sales;
- And tenant’s security deposit may be applied toward re-opening costs and costs associated with space modifications or reconfigurations via reimbursement.
“It is becoming clear that even when all businesses are able to reopen, it’s unlikely their sales volume will immediately return to pre-pandemic levels, and we want to make sure that rent payments aren’t a barrier to success,” Cullen said in a statement.
To be eligible, a tenant must currently operate as a retailer, or food and beverage purveyor, or is a new tenant that opens before Dec. 31, 2020 – when the program and amended leases expire.
The tenant must also be in good standing as it pertains to their lease agreement prior to the pandemic.
Since March, Bedrock and the Rock Family of Cos. has committed millions to building up local businesses, through rent relief, personal protective equipment procurement and grant funding.
Cullen said “Bedrock Relaunch” is a continuation of that effort and a nod to Bedrock’s history. What began when Dan Gilbert spearheaded the purchase of his first building, The Madison in 2011, has evolved to become one of Detroit’s largest full-service real estate firms with over 100 properties acquired and developed over the last decade.