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Category: COVID-19, Leasing, Net Lease Retail Tags: Coronavirus, COVID-19, Landlords, retail, Tenants

How to Enhance Property Value

The COVID-19 pandemic disrupted the relationship between landlords and tenants, with the outcome poised to change the commercial real estate industry.

Landlords and tenants have found themselves in uncharted waters as a pandemic clause does not come standard in most commercial lease agreements. As non-essential businesses closed, tenants began to see cash flow problems, and landlords faced pressures from tenants to renegotiate leases.

The widespread economic shutdown brought landlords and tenants to revisit the terms of their lease, restructuring to give landlords a greater sense of certainty of tenure and cash flow in exchange for sustainable rental structures and capital relief.

Overnight, businesses overhauled their operational models and workers, and consumers changed lifelong habits. The retailers that adjust and adapt to this new reality will succeed and shift the industry to a brighter future, ultimately weeding out tenants unable to keep up with the changing consumer times.

This article will help landlords and tenants navigate and plan for the next generation of complexities that will be necessary to address in the new retail market.

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