After the government performed a U-turn and implemented a 2nd national lockdown, many aspects of commercial property have been left uncertain. Warehouses, retail stores, and office owners will have questions about the effects COVID-19 will have on leases and rent payments.

To find the answer to any questions it’s important to consult commercial property law. Commercial property lawyers can guide both tenants and landlords through rent and lease challenges during the pandemic. If you’re a tenant struggling to make an agreement with your landlord, commercial property lawyers can offer you advice and act on your behalf in any discussions. For expert commercial property law guidance, call BP Collins solicitors on +44 (0) 1753 889995 today.

Commercial property lawyers can also advise and support landlords during this time. This could be crucial as massive changes are happening everyday in commercial property. One sector that has faced a huge impact in 2020 are offices across the world.

The Impact On Office Spaces

Many people have been forced to work from home and this could become a permanent change to how staff work across the world. Barclays chief executive, Jes Staley, said that the idea of an office building could be a “thing of the past.” Coming out of the pandemic, how many people work could be massively different, which could impact a wide range of commercial properties.

A lot of companies are already analysing how flexible ways of working could benefit their business and staff in the future. It could be a cost-effective switch over the long term. However, landlords and property investors may be facing a massive loss of income. This may lead to a significant increase in office to residential conversions to transition away from renting commercial properties.

Leases & Rent Payments

The impact on COVID-19 has led to many commercial property tenants requesting assistance from landlords with rent. For example, some organisations have asked to change their rent payments to monthly, rather than quarterly. Similar agreements may stay in place for the months and years after the pandemic ends because of the residual impact on profits.

Of course, this will massively impact the revenue that landlords can make. Reaching a new rent agreement with a tenant is much smarter than evicting them and trying to find a new tenant in such an economically difficult period. Landlords may agree to their tenant subletting part of the property as a way to guarantee rent payments are completed. Of course, agreements like this will depend on the relevant commercial property law.

Whatever decisions are made, they will need to be negotiated between the landlord and tenant. To reach the best outcome for both parties, it’s important to communicate and compromise. This where it’s important to consult with a commercial property lawyer. They can advise you on the appropriate course of action and help you to reach a solution that’s in your interests.

How COVID-19 Has Impacted Retail And Warehouse Space

Unfortunately, the British high street has been declining for many years because of the rise in online shopping. Due to the pandemic, more customers were pushed online to buy items as essential shops were forced to close. Once the initial lockdown restrictions were lifted there was a spike in customers visiting retail outlets. When things get back to normal after the current lockdown, people’s shopping habits could remain online.

This could lead to a big decline in retail property prices because of their reduced profits. Even with business relief packages from the government, many retailers will face a battle to keep their doors open when lockdown restrictions are lifted. A result of this could be many retailers selling their premises to be converted to residential properties.

However, warehouse space will see a massive increase in demand because of the rise in the use of online shopping. Online outlets need a physical location to store and package their goods. Even if the clamour for commercial retail properties decreases, this could lead to warehouse spaces becoming more lucrative property investments.

Whatever aspect of commercial property you are involved in, whether you’re a landlord or tenant, you may have to renegotiate any new leases or lease renewals. If this is the case, you will need to contact a commercial property lawyer to advise you on the best course of action.

If you need assistance with commercial property law, contact BP Collins commercial property who will advise you on your situation.