Posted on 11/01/2022 11:31:00 AM PDT by JonPreston
The findings, published Tuesday by Boston-based business tracker Alignable, illustrate the stark effect inflation is having on everyday Americans
The survey of 4,789 small business owners saw more than half of respondents say their rent is at least 10 percent higher than it was six months ago
If you go back seven months, the majority said rents have increased 20 percent
The study found that roughly 37 percent of small businesses - almost half of all Americans working in the private sector - were left unable to pay rent in October Compounding concerns is the fact that several states, such as New York, and California, are already well over the already-high national average
(Excerpt) Read more at dailymail.co.uk ...
It’s not a “bad economy” until it affects the highly educated professional class.
10%? That is right on the money with the cost of goods probably around 20% avg. Not easy to make ends meet for a small business right now.
Do these people not believe in leases?
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“Do these people not believe in leases?”
Maybe they want the mobility that month to month offers.
Easier to shut down a failing business and seek other opportunities.
Leases aren’t forever. You have to renegotiate sometimes as well. Also, some leases have automatic increases as well.
And commercial leases are completely different than residential leases. Commercial leases entail the small business leasee having to do their own repairs to the bldg, electrical, HVAC, etc.
And commercial leases are completely different than residential leases. Commercial leases entail the small business leasee having to do their own repairs to the bldg, electrical, HVAC, etc.
Yep - and this was a very hot summer which caused high energy bills and costly repairs to HVAC
Sure, but this was over half in one month and many leases are multi-year.
Yeah it is because there will be cascading defaults if small businesses cannot afford the rents much less rent increases programmed into the financial arrangements that the property investors are counting on to cover loans, expenses, or provide income to pay their own living costs.
Excellent point.
“The study found that roughly 37 percent of small businesses - almost half of all Americans working in the private sector - were left unable to pay rent in October....”
What the study isn’t telling you is how many of those businesses weren’t paying rent even before the inflation hit. Commercial tenant delinquency has been an issue ever since the lockdown.
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