Coronavirus and commercial property

The impact of coronavirus on the commercial property market has the potential to be wide-ranging for landlords and tenants alike.

For tenants, being unable to pay rent and facing eviction could be the death-knell for their businesses, while landlords face losing rent while still having to meet the demands of their bank.

In response to these concerns, the Government has confirmed that commercial tenants that are unable to pay their rent due to disruption caused by the Coronavirus pandemic will not face eviction.

The Government is enforcing a three-month moratorium on evictions and debt enforcement for commercial leases in the emergency Coronavirus Bill, which will ensure that no business will be forced out of their premises if they miss a payment in the next three months.

Tenants will still be liable for the rent due in arrears after this period and the Government has said it is actively monitoring the impact on commercial landlords’ cash flow to ensure their operations are not put at risk.

Many commercial landlords and tenants are already in discussions about their rents, but it is important that they take proper legal advice before coming to an agreement.

See our update here

Renegotiation of your commercial lease while your office is vacant

If your office is currently vacant as a consequence of the crisis, you may wish to renegotiate your commercial lease. We are able to provide expert legal advice on the renegotiation of your commercial lease while your office is vacant.

Commercial rent holidays

You may wish to agree a commercial rent holiday with your landlord in order to help you weather the storm.

Rent reduction

Rent reduction may be an option you can discuss with your landlord in order to reduce your outgoings during the crisis. We can advice you on the legal considerations involved.

Mitigate service charges

Another way to reduce your outgoings during the crisis could be to mitigate your service charges.

Our expert commercial property lawyers are on-hand to advise you on the best course of action, whether you are a landlord or a tenant.

Contact us now for advice on your specific circumstances.

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