UWT throws business tenants a lifeline during COVID-19 crisis: No rent due for now

Until May 31, people who rent business space from the University of Washington Tacoma will not have to pay rent.

In a statement, John D. Burkhardt, the university’s director of communications, said the school felt an obligation to its community.

“Our overriding goal is to get everybody through to the other side of this period. It makes good business sense for us and for our tenants,” Burkhardt said. “We have an obligation to do what we can to help jumpstart Pac Ave once the region begins to emerge from the pandemic.”

In an email to tenants, the university said it “is voluntarily waiving your monthly Base Rent, Leasehold Excise Tax and Operating Expenses at your leased location from April 1, 2020 to May 31, 2020.”

Stores receiving the support range from salons to boutiques to restaurants, all of which have been faced with the decline in foot traffic due to the campus being closed and other impacts of the coronavirus crisis.

Julia Crouch of Bleach, an apparel store, spoke to the struggles and challenges that have come with the last several weeks.

“Once they shut down and had students go home for online learning, our traffic down on Pacific Avenue completely dried up,” Crouch told The News Tribune. “We actually closed our doors on St. Patrick’s Day.”

Crouch also laid off most of her staff while trying to operate mostly online. The break on rent was much appreciated, she said.

“We run on a really tight cash flow, so when the people dry up from coming up, it’s hard to keep the business running and so the waived rent was a huge help,” Crouch said. “Pending how long this goes for, it almost guarantees we are going to come out healthy on the other end, which is awesome.”

Eric McGahuey, of Londons Salon, had a similar experience.

McGahuey has two locations, one of which is on the UWT campus. He had to close down as no one can come in for appointments.

“Both our salons are boarded up,” McGahuey said.

That meant the salons’ hair stylists, who are independent contractors and rent space in the business, had nowhere to work.

McGahuey told The News Tribune because he temporarily doesn’t have to pay rent the stylists won’t, either.

“Whatever money they have left over, they can put to more important things in their lives,” McGahuey said.

Another store, Tinkertopia, has faced similar fallout.

One of the big losses for the business has been the drop-off in birthday parties coming in to use the shop’s “maker space.”

Owners Darcy and RR Anderson were relieved to get support from UWT.

“We are really, really fortunate to be tenants under the University of Washington Tacoma,” Darcy Anderson said. “They’ve always been very generous in working with their tenants and working with us.

“They realized that without the campus population being there, visiting all the storefronts and restaurants, this is going to be a huge impact on revenue.”

Hello Cupcake is one of more than a dozen restaurants and cafes in UWT-owned buildings. Owner Allix Zemcik kept the bakery open for to-go treats and delivery through Postmates until March 24 when she opted to close for health and safety reasons following Gov. Jay Inslee’s stay-at-home order.

UWT extended the reprieve on March 25, she said, adding, “We currently have no income with the business being closed, so any relief like this is a huge help. I appreciate that they had the best interest of their tenants in mind, and they chose to do something that will help us recover more quickly from this setback.”

Tinkertopia’s owners noticed not every business in town is receiving the same help.

“We see all the Facebook postings about similar businesses with landlords who are saying, ‘You got to pay this.’ It’s been kind of gut-wrenching seeing that happening to other people,” RR Anderson said.

Liz Van Dyke of Stocklist, a goods and gifts store, echoed that appreciation as her shop too has faced tough times.

“Over the last few weeks Stocklist has had to lay off our entire staff. We’ve canceled orders across the board, and this includes local vendors that we work with,” Van Dyke said. “We rent from the University of Washington, and they’ve worked with us to help us get through this crisis.”

“They recognize the impact of both COVID-19 and their decision to move to online classes for spring quarter is having upon us, and they have stood by our side.”