I have to disagree with #2. Landlords can charge whatever they want, and there is little reason to suspect that they'll lower rents after this.
This is not a normal period where one failing company can simply be replaced by another successful one.
If all 50 restaurants start having problems, he now is going to be super motivated to figure out a way to help them all stay in business.
In NYC there are many vacant commercial spaces because landlords hold out for the highest paying tenants. You're overestimating the desperation of landlords.