The COVID-19 pandemic has created innumerable challenges for the broader economy and the commercial real estate industry. Amid lockdowns, rising unemployment and a more cautious citizenry, landlords are facing a historic decline in rent collections within certain asset classes and markets. As many property owners and operators have focused on lease modifications and other terms to provide rent relief to struggling tenants, it has become necessary to provide clear disclosures for investors and advisers.

In September, the NCREIF PREA Reporting Standards issued an updated Guide for Disclosures of COVID-19 Related Rent Relief. We contacted a number of industry participants and asked them what factors (e.g., lease term, capital improvements, cash-flow needs, return expectations, etc.) have an impact on negotiated rent relief, and how they v