Prior to lockdown, the real estate market had already been experiencing a significant downturn. This is probably due to the fact that the sector, for obvious reasons is most sensitive to changes in the business lifecycle and this began to trigger financial stress, which in turn caused increased levels of corporate insolvencies.
While the government’s urgent measures are designed to protect businesses affected by Coronavirus generally, they are predominantly aimed at the tenant while the landlord has been largely forgotten. Action by landlords has been described as “aggressive rent collection”, while evidence shows that on the June quarter date, just 18% of commercial rents had been collected. There will inevitably be casualties along the way as we continue to emerge from the pandemic. In their latest podcast, which you can view here, Real Estate and Construction partner Clare Harrall and Insolvency partner, Ian Robert discuss the impact of insolvency on the sector.
If you have been impacted by any of the issues discussed in the podcast or if you have any questions, you can contact Clare Harrall, Real Estate and Construction Partner, or Ian Robert, Insolvency Partner.
At Moore Kingston Smith, their business continuity services support organisations ensure they are prepared for any impact the Coronavirus outbreak might have on their businesses, employees and families. Find out more here.