COVID-19 is changing, or rather has already changed, the 'rules of the game' for commercial leasing. No sector has escaped the impacts of COVID-19 on the tenant / landlord relationship with almost every organisation experiencing reduced utilisation of leased premises together with diminished business activity. In this extraordinary and unforeseen circumstance, the long held adage that terms cannot be changed after the ink is dry is being overturned by the depth and breadth of COVID-19 impacts.
This webinar provides guidance to commercial tenants in relation to negotiating interim leasing arrangements to get through COVID-19, and in relation to getting leasing arrangements in place for post COVID-19 business requirements. John Reed sets the scene by outlining the changes to the ‘rules of the game’ and the drivers of these changes. Julian Kurath, joint managing director of Lpc Cresa, goes into more detail about tenant representation objectives and the process needed to achieve ‘fair proportion’ reduction in occupancy costs whilst the COVID-19 crisis persists. He then addresses the need for tenants to focus on getting ready for post COVID-19, and on the importance of getting a clear strategic picture of the post COVID-19 premises requirements and what leases and premises modifications are required. Julian stresses the importance of getting on with post COVID-19 readiness sooner rather than later, to ensure leverage in achieving necessary changes to historic leasing arrangements. Rebecca Pelling, managing director of Lpc Cresa Project Services, picks up on the importance of ensuring premises are ready for post COVID-19 with specific reference to the impact of the accelerated adoption of mobile working practices upon the post COVID-19 workplace.
The central message to office, retail, and industrial tenants is that COVID-19 is the time for a step-change in leasing arrangements and premises design and utilisation. The impacts of COVID-19 on health and wealth will remain in the memory bank for many decades and this, together with the greater adoption of technology and remote working, will drive change and the demand for more flexible lease terms and more fluid worksplaces.
Download the webinar slides here.