In New York and across the nation, business and personal finances have been severely hampered by the ongoing health crisis. Unpaid rent on commercial property is a prevalent problem and owners are increasingly taking their cases to court to try and get what they are owed. Although many will be sympathetic and flexible in getting payment, the outright refusal to pay might only be settled through litigation. For these issues, it is important to have experienced legal assistance from a firm that understands business cases and real estate.
Company accused of failing to pay almost $2 million in rent
Two companies are accusing a flexible workspace provider of failing to pay rent on its commercial properties. One says it is owed $1.5 million and it has not been paid since April. The building is in Midtown Manhattan. The company filed a case to receive payment. The workspace provider had agreed to a 15-year lease beginning in 2016. The other company says it is owed $424,000. That building is 10 blocks away from the first building. It agreed to rent the building in 2018. The lease was canceled in October.
The workspace provider had a major boost in funding when it was expected to be a significant player in its category. It received $400 million in funding in 2019. However, the ongoing health crisis upended its plans not just in New York, but around the globe. It reduced its workforce by half to 200 people in March. Another set of layoffs happened in October. It is also reducing its footprint in the U.S. Overall, there were 21 lawsuits against the company in New York requesting almost $10 million, most for rent that was unpaid. Other companies that are in the flexible workplace business have experienced a financial crunch and are confronted by litigation.
Commercial real estate problems may require legal assistance
For companies and individuals involved in commercial real estate in New York, it is important to be legally protected. This is a complicated business rife with challenges. The latest is the ongoing health crisis impacting people and companies across the board. The lifeblood of commercial rentals is receiving payment. If renters do not pay what they owe, one of the main ways to address the issue is through a legal filing. For assistance, advice and representation, a firm that understands real estate and its challenges should be contacted as soon as possible.