Effects of COVID-19 on Commercial Properties
We are currently experiencing an unprecedented event that is causing major disruptions to Commercial Properties. This event coupled with constant updates and restrictions from both State and Federal Governments are having a major impact on Commercial Landlord’s and Tenants alike.
Landlords are being encouraged “to work together” with their Tenants during this period, to ensure that we regain as much normality as possible once this pandemic is controlled. The Landlord has multiple avenues to choose from when providing a concession to their Tenant.
A period of time where the rental is waived.
After government clarification, this is to be a minimum 50% reduction of the Tenants rental. However, this percentage can be lower if agreed to between the Landlord and Tenant.
Where the rental owed over a certain period is paid back over an agreed period of time. With government clarification, the balance of the Lease term or a period of 24 months, whichever is greater. This can be altered depending on Landlord and Tenant agreement.
Should you require any further details on the above, or wish to transfer your properties management to First National Commercial Neilson Partners, please contact Shannon Hynd or Serdar Ozcetin from our office on (03) 9705 4888.
This above information is general in nature. Should you require advice we suggest that you speak to Legal and Financial practitioners.