75% of downtown Toronto business owners say they won't be able to pay May rent

[Charlemagne]

75% of downtown Toronto business owners say they won't be able to pay May rent

City

Amy Carlberg

Most downtown business owners in Toronto won't be able to pay rent this May according to a survey done by a neighbourhood business association.

The Corktown Residents and Business Association conducted a survey of 43 business owners over a ten-day period from March 26 to April 4. 75 per cent responded that they cannot pay May rent, and almost 30 per cent have not yet paid April.

"The Province needs to implement a Commercial Rent Freeze immediately," says Aaron Binder, President of the Corktown Residents and Business Association. "Commercial Landlords are still expecting businesses to pay up after being shut down."

Responses to the survey indicate that adaptive measures like new revenue models, cost-cutting strategies, and offering takeout, delivery, pre-payment or online services have not been successful for most businesses.

While nine in ten business owners had tried to make at least one change to generate revenue, only one in ten felt these measures were effective.

"Our analysis of financials with business owners indicates that these measures will not be nearly enough on their own to cover fixed costs," say the survey results. "Nine out of ten have tried some measure to reduce costs, including one third have limited hours, one half have delayed payments."

The survey also found that one in five business owners don't qualify for loans or aren't sure if they do and that four out of ten have applied or will apply for loans, but one in five business owners are not willing to take a loan (i.e. go into debt) to continue paying operating costs.

"Several respondents indicated difficulty getting any cooperation from commercial landlords on negotiating rent," the survey results say. "This is a consistent theme we have heard across the community."

Overall, three quarters of businesses responding reported an 80 per cent drop in revenue, even businesses remaining open reporting a decline in revenue of more than 40 per cent in March.

https://www.blogto.com/city/2020/04/downtown-toronto-business-owners-wont-be-able-pay-may-rent/

 

[lenny2]

The government has said tenants cannot be evicted for non payment. Does that apply to businesses?

 

[Smallcock]

The government has said tenants cannot be evicted for non payment. Does that apply to businesses?

Your dream of a 2 year government paid vacation is turning into a nightmare, and we're only a few weeks in.

 

[bebe]

To save the businesses they need to be allowed to reopen. The data is clear. Covid 19 is deadly in the elderly especially those in long term care. The vast majority of the population can recover from it.

 

[Charlemagne]

To save the businesses they need to be allowed to reopen. The data is clear. Covid 19 is deadly in the elderly especially those in long term care. The vast majority of the population can recover from it.

If that happens, Cons will have an extremely difficult time winning elections.

 

[asuran]

To save the businesses they need to be allowed to reopen. The data is clear. Covid 19 is deadly in the elderly especially those in long term care. The vast majority of the population can recover from it.

They can recover from it but some may have to go thru difficult medical conditions. Hospitals will be overcrowded and overworked.

 

[Keebler Elf]

The government has said tenants cannot be evicted for non payment. Does that apply to businesses?

There was a guy on the radio who is organizing the restaurant industry and according to him it does not. Making matters worse, their concern is that they were told by the supply chain that feeds all the restaurants that if 25% or more of the restaurants go under the supply chain isn't sustainable and then it will start collapsing too.

Their solution was bailouts. They said they didn't want more loans as they're already up to their eyeballs in 'em and margins are already razor thin.

Do I believe him? Meh. But it sounds like a big restaurant industry correction is coming one way or the other.

 

[jackal2006]

Not just a restaurant correction but a general correction is coming and long over due. Canada had bloated payrolls and consumer demand based on continual immigration yo keep housing and other industries afloat when without this government support would have fallen. Also household debt was out of control. Too many people were living a bullshit life of success using borrowed money and debt.


Hopefully now immigration will stop for a while so finally the Canadians that are in country can benefit. Immigration has pushed out many Canadians out of work out of housing and out of school opportunities.

Hopefully people will learn from this correction and live within their means going forward and appreciate life and people more.

 

[John Henry]

Well the tenants can tell the landlord to go pound salt like someone suggested the lady from Hawaii do . Only kidding here .

If these business close shop than the buildings will be empty for a long time . It will be hard to fill these vacancies especially during these tough times . In other words wait until you get paid or kick them out and get nothing for a long time . Don't see people running to start a business in these economic times .

 

[canada-man]

They can recover from it but some may have to go thru difficult medical conditions. Hospitals will be overcrowded and overworked.

hospitals are empty and many ar laying of staff and many staff are making tik tok dance videos

 

[thadude]

sorry, i don't mean to sound insensitive, but with over extended housing prices and rent as a product of peoples incomes, I'm not really in the give a fuck cohort.
Look, as someone who's lived a shitty life over the last decade and a half, it's time the real estate returns back to reality. Sorry folks, time to start making honest dollars and figure out a new profession.

cheers

ps- I wanted to extend on this post. Too many people out there are flipping housing, and whatever the fuck type real estate these goofs can get their fingers on because, let's be honest, it's been easy money.

Well, As a person looking to own their first house or condo or overpriced shoe box, fuck you it's our turn. You are all lucky the government is giving the liberal amount of handouts they are. Count your blessings and be safe.

 

[Malibuk]

Well the tenants can tell the landlord to go pound salt like someone suggested the lady from Hawaii do . Only kidding here .

If these business close shop than the buildings will be empty for a long time . It will be hard to fill these vacancies especially during these tough times . In other words wait until you get paid or kick them out and get nothing for a long time . Don't see people running to start a business in these economic times .

I don`t think tenants should just say fuck you but I do believe that it is in both party`s best interest to work something out, if possible.
This may also require the landlord working something out with the bank or government.

The sad reality is that many people, businesses, and landlords are going to get crushed from this, especially the longer this lockdown goes.

 

[lomotil]

Not just a restaurant correction but a general correction is coming and long over due. Canada had bloated payrolls and consumer demand based on continual immigration yo keep housing and other industries afloat when without this government support would have fallen. Also household debt was out of control. Too many people were living a bullshit life of success using borrowed money and debt.


Hopefully now immigration will stop for a while so finally the Canadians that are in country can benefit. Immigration has pushed out many Canadians out of work out of housing and out of school opportunities.

Hopefully people will learn from this correction and live within their means going forward and appreciate life and people more.

Canada like Japan has negative population growth without immigration. The immigrants continue to take jobs that those born in Canada simply will not do. Too many lazy Canadian born people are on social assistance, and they say why to themselves why work if they don't have to. Stopping immigration will only deepen the recession. Go to any major hospital in the GTA and remove all those workers who were not born in Canada and see what happens !