As the nationwide lockdown is in full swing, we take this chance to check in. We hope you are adjusting to the situation and looking after the health and well-being of yourself and loved ones.
As a team, we have successfully adjusted to working remotely and remain very focused on helping you navigate through these uncertain times. We are in an excellent position to assist, so please do not hesitate to contact us.
As the majority of businesses cease to operate, landlords and tenants are left to manage an unprecedented situation. Given the uncertainty around the length and severity of COVID-19, it is prudent to consider the issues from both a landlord and tenant point of view – and we are here to help.
As the realities of COVID-19 start to hit, many tenants are looking for financial relief from landlords. You may be familiar with the ‘No Access in Emergency’ (clause 27.5) in the Sixth Edition, Auckland District Society standard lease form, first published in 2012. The impact of this clause on ‘rent and outgoings’ is being scrutinised and we are keeping abreast of how it may affect your situation. Government support offered to small business (and how this might ease a tenant’s situation) is also something we are weighing-up as we develop a strategic plan of action for you.
Our goal is to minimise the disruption and risk to you as a landlord. As part of this, we do support tenants remaining in occupation wherever possible. Rent of some capacity is better than a vacancy.
We are here to provide guidance through this time on the lease provisions and implication of any negotiations. Every strategy we recommend will be made on a case-by-case scenario, with full transparency, consultation and approval from you.
As a final note, there is no shortage of media coverage on how this crisis might affect capital markets. But we believe it is too soon for bold predictions. While investment activity will slow for a period, we are heartened by the fact there will be continued low, risk-free interest rates, keeping commercial real estate an attractive asset.
Stay safe, stay well, and if you haven’t already, please contact us for any assistance.
The team at Viranda.