The Philippine Chamber of Commerce and Industry (PCCI) is seeking the grant of relief to stall and/or store lessees, specifically the small ones, in malls and other commercial establishments.
PCCI made an appeal to work out a strategy that will provide relief to tenants of malls and commercial buildings that will not negatively affect the capital expenditure of owners/lessors to be able to continue providing service to their tenants.
PCCI proposed during the recovery period, rent may be based on the percentage of the sales of tenants until such time the situation normalizes and the tenants able to meet their contractual obligations.
This will give tenants breathing room to stay open.
“Lessors can give lower rent in exchange for a percentage of sales of their MSME (micro, small and medium enterprise) tenants until such time that the situation normalizes and the tenants are able to meet their contractual obligations (fix rental),” said PCCI president Benedicto Yujuico.
Yujuico said in a statement supporting the needs of existing MSME tenants who can be viable again makes more sense than having vacant stalls or taking in new tenants and aspiring entrepreneurs who have not proven themselves explained.
“Sales have plunged to their worst in decades. There has been a cascade of store closures and jobs losses. The persistence of low consumer confidence and limited public transportation and mobility is making it difficult for enterprises to recoup their operational costs to be able to pay the rent on top of the utilities and their workers,” he said.