I'm in a weird position in that I'm a commercial landlord in downtown SA. I've deferred the rent for April for a number of small tenants in a warehouse I converted into office/retail suites. I have two tenants that occupy four suites, one a coffee shop cafe with a beer/wine license that is under construction (about 90% complete) and has two combined suites and the other an upscale bar (full liquor license) that has two combined suites, with each business having about 2,800 sq ft. I've deferred their rent for April and would probably do the same for May because I'd like them to be successful and keep paying rent. But I can't keep doing that indefinitely with my note, taxes, and building maintenance I need to pay.
So I'm game planning for the event that either or both decide to throw in the towel and how to handle that. I'm not one to sue for all rent due and that kind of thing. If a business fails, I let them out of their lease as long as they leave the space as is and don't remove fixtures so the space can be re-leased as the same type of business. I have enough savings to carry my expenses for a year or so. So one option is I can try to find same the type of tenants to take over those suites. As one is fully built out and the other nearly built out, this may be a good option. But I'm wondering if it makes sense to just take over those businesses myself and hire managers etc..to run them on some kind of profit sharing model so I don't have to outlay cash. In good times I think both businesses could be very lucrative and produce revenue way beyond the rents. The area around is/was booming with new apartment and office buildings. I prefer passive income to being directly involved in businesses, but this economic environment may force my hand. Anyways, just thinking out loud about how to handle this mess.