In Your Own Words

You are invited to share your outlooks and opinions regarding the situation, the industry’s response, future outlooks and related thoughts.
See what others are saying.

What You're Saying

"I've got a client that owns a property cross-collateralized against a basket of other buildings and wants to sell it. The lender is requiring an appraisal of all the assets in order to release this one from the pool. Every other building is fully occupied so access may be limited by the tenants in the coming weeks. Is there any way to get the bank to waive those appraisals (or do them without physical inspections) so we can keep the transaction moving along in a timely manner?"

- Anonymous (March 25)

 

"I'd really like to get some insight as to where things stand with any possible standstills on rent, mortgages and taxes. Are there discussions happening in DC on those topics?"

- Andy Gottesman (March 23), Summit, New Jersey

 

"Have been through downturns but none of us have been through this. Thoughts are until a vaccine is available the markets will continue with uncertainty. The US and other countries need to get over the “hump” before major long term decisions will be made. There will be businesses that will fail or have substantial losses. I am in the tenant advisory field, leases do always expire but what Tenants decide to do at that time is the question. Likely short term extensions with major flexibility to terminate or grow space when the markets turn positive. Landlords likely will want to early renew tenants vs risk them moving to vacated spaces from the fallout. New flexibility with timing issues for permitting, buildout, financing, letters of credit, holdover, lease clauses protecting pandemics, etc will need to be negotiated and there is no “market” to look to on these issues. Actually no law yet has determined if Force Majeure includes pandemics. And then the definition of pandemic will need to be defined as to the municipality the real estate is located and if the government shut down the business there, etc. Right now everyone is trying to adjust to this new normal working from home but timelines are ticking on tenants needing to build and move, there will need to be all parties willing to compromise in these trying times."

- Anonymous (March 23)

 

"I've had a couple of investors ask about whether industrial tenants might ask for a break/reduction in there rent as a result of the unprecedented retail closings and the government asking and in some cases mandating non-essential business be closed?  I would think that retail store locations and possibly even some office tenants (like co-working tenants) might have some rationale using the argument vis a vis their force majeure clauses and possibly under the concept of this being considered by some and possibly the Administration that this a type of war we are facing...?  Anyhow, its a question that has never previously raised its head in the industrial space in my career and I was curious if others are hearing anything about it or if it has happened to any landlords of industrial property?"

- Jonathan Tratt (March 23), Phoenix, Arizona

 

"Good Morning, thank you for offering this forum to raise questions.  I'm interested in hearing how other Developers and Landlords are handling their tenants when a tenant asks to hit the "pause button" on their rent due to Covid 19 virus.  Similarly, what kind of relief are Developers seeking from their lenders?" 

- Robert O'Neill (March 20), Newark, Ohio

 

"Economists are projecting a "short a vicious" recession with a fast rebound once a vaccine is created.  How long does it take after a normal recession for development and construction to rebound?  It would help to have forecasts for our industry because we have a lag."

- Jonathan Ward (March 19), Brookfield, Wisconsin

 

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