As realty lease consultants with over 75 combined years of experience, we have a front row-centre view of how the pandemic is affecting leases and tenancies.
The problem is that leases are agreements written at a certain point in time to describe terms and conditions over a future period of time.Terms and conditions were defined when the lease was written in the context of the “world as we know it” and from that context certain assumptions were made.
We now know that the impossible became possible and in fact actual. No-one in their wildest dreams would have expected the situation we find ourselves in now. The Covid 19 pandemic sweeping the world has made enormous and very abrupt changes to everything – how we communicate, how we do business, how we live. Many people are left feeling turbulent, unable to understand what is happening or will happen in large part because our points of reference are gone.
So, what happens to our leases now?
Our leases define the landlord-tenant relationship which includes how, when, why,where, who and what we can and cannot do with our premises. Our leases are very detailed legally binding reference points to our daily working lives now and for many years to come.
What happens when our society changes abruptly, significantly and likely permanently to terms and conditions set out in legally binding documents that did not anticipate this change and in fact have become inappropriate?
As realty lease consultants, we have put together a series of articles which we will shareover the days to come. These articles explore some of the issues we are looking at right now which we hope you will find interesting and applicable to your situation. We will be looking at such topics as:
1. Your Pre-Covid Lease is Obsolete,
2. Banks, Landlords, Tenants and the Government – Somebody’s Gonna Get Hurt Real Bad”,
3. Look Forward to Lease Term Renewal,
4. The Changing Real Estate Market,
5. Your Lease and Clinic Re-Opening,
6. Site Selection in the New Era and
7. Rent Management – Deferral, Reduction and Subsidies.
As always, we look forward to your feedback,questions and we are always available for consults.
A parting thought. Ian Toms, founder and president of Realty Lease Consultants Inc. was a multi-unit retailer when the economy stopped in 1990. Faced with insolvency, several leases,a large staff and sales at 50% less than pre 1990, he survived and even thrived by keeping his head up and eyes open ready to embrace change instead of looking back.
We will not return to “normal”. We will move forward to a new equilibrium. Step forward into growth.