Gulp: Small Business Rent Delinquencies Hit 3-Year High

The Small Business Rent report from Alignable, which provides an online networking platform for owners, found that 43% of small businesses were unable to pay their rent in full due to economic headwinds. That’s the highest rent delinquency rate since March 2021.

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Independent restaurants are having the most trouble, with 52% not paying April rent on time. On the other hand, just 20% of small manufacturers are delinquent.

More than half of small-business owners say that their rents are higher now than they were six months ago. Of those, 11% are paying at least 20% more than they did last fall.

Ed Morrissey

The commercial real-estate market is due for a big correction, and the crisis may be in sight. Red Lobster's Chapter 11 action is being driven in part because of lease rates that far exceed realistic value in today's commercial real-estate markets, where occupancy has cratered since the pandemic. Also, this speaks volumes about the Bidenomics economy, where businesses can't raise prices fast enough to keep up with expenses. 

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