A campaign to suspend rent for small businesses being financially hit by the coronavirus outbreak is gathering momentum in Australia, with a developer pledging to allow its tenants to go rent-free for several months.

Key points: The global 'suspend the rent' movement began in Europe

The global 'suspend the rent' movement began in Europe An Adelaide firm will halt rent for small business owner tenants

An Adelaide firm will halt rent for small business owner tenants They urged other commercial property owners to do the same

Adelaide development firm Commercial and General announced online that small business tenants in its developments would have their rent suspended for three months.

The company's executive chairman, Jamie McClurg, said he believed the move would have a positive impact if it was adopted more broadly.

"I think the most effective thing that we can do is keep hands in the pocket of small business," Mr McClurg said.

"Obviously, governments are doing all that they can to help small business and to help people bridge the gap … I think this is the least the property industry can do, just to get a very effective delivery on the ground.

"Our logic is, suspend the rent for a period of time, and that allows people to keep things moving."

Mr McClurg said landlords needed to show that they could give back.

"I think you've got to give to get — and pass on — but you've got to give firstly, before you get anything," he said.

"So I think, as an industry, we need to show that we can give.

"For me, it's just about ultimately having a position where, if my tenant makes a great pizza, that they can continue to make a great pizza."

The company is following the lead of others in Europe that have taken similar measures to help tenants.

Mr McClurg said some tenants who owed money have also had their slates wiped clean.

"We've also taken a position … when some tenants have been in arrears, or just coming into arrears, that is suspended as well — so their arrears have been forgiven," he said.

"So we've just taken three months [suspended rent] and we'll see what happens after that."

Rent freeze 'will give us every chance of surviving'

Adelaide restauranteur Davide La Scala, who runs Italian eatery Est Ovest, said while the business had seen a steady decline in customers over the past few weeks, this week was the worst.

He was questioning whether it was better to close now or wait and potentially see the effects get worse.

Davide La Scala said the three-month rent freeze helps businesses to "see light at the end of the tunnel". ( ABC News )

"The more cases that arrive, the worse it is for the business," Mr La Scala said.

"This week where we've seen somewhere in, at least, the mark of 50 per cent decrease in business — some days, more than that.

"If turnover might normally be $20,000, we're only doing $10,000 [this week].

"For a business that is reliant on cash flow, from week to week, it'll be a very steady decline for us, and it will be quick before we find ourselves in a lot of debt."

Mr La Scala said he had been questioning whether it was better to close now, or wait and potentially see the effects get worse.

He said the three-month rent freeze granted to his business by Mr McClurg was a "massive help".

"It's a great initiative and for us, it means that we can see light at the end of the tunnel, provided we manage things correctly on our end," Mr La Scala said.

"It is a huge help and will give us every chance of surviving this pandemic."

Call for landlords to work with government

Property Council SA executive director Daniel Gannon echoed Mr La Scala's comments, calling the economic situation "unprecedented".

"We're all in this together — government, business and the community," Mr Gannon said.

"We all have a shared interest in seeing businesses make it through the crisis so they can be part of the recovery, which will come at some point.

"Our experience has been that landlords will seek and are seeking to work with their tenants to help them come through times like these."

He said that while circumstances would vary from business to business, "government is also a major stakeholder and needs to be involved, providing relief from taxes and charges that are levied on property owners".

Mr La Scala asked other landlords to make the same concessions for their tenants, where possible.

"We understand that everybody is suffering during this period — everybody," he said.

"However … if the landlords could assist in this department, if they could rally together and all do what Jamie McClurg and Commercial and General have done for us, then I believe the government would have no choice but in turn to support them.

"I believe if it's a group effort, if it's something that we could do cohesively together, it will help."

Other landlords urged to follow suit

Mr McClurg said if everyone shared some "short pain" together, including property owners, "we'll all be better off".

Adelaide developer Commercial and General's chairman, Jamie McClurg. ( Supplied: Commercial and General )

He urged other general commercial or private property owners to get on board if they could.

But he drew the line at residential property owners, underlining that residential landlords may not be able to afford their mortgages without receiving rental payments.

"As it relates to small enterprises, mum and dad businesses, rent at commercial premises or retail premises … they're the ones who need our support," he said.

"These sort of businesses all have, essentially, families who hinge off the back of them, a lot of casual workers — workers who have good skills, workers who serve our coffee every day, or make our pizza every day.

"I enjoy a good pizza, and I think that if a restaurateur can have a position where they're not paying rent, they can keep the pizza maker on and keep thriving, that's better for all of us."