Visual Lease, the leader in lease accounting and management software, released findings from a recent customer survey that probed the impacts Covid-19 is having on the commercial real estate market. With the global pandemic pushing the overall real estate sector into previously unchartered territory, Visual Lease sought feedback from its corporate tenant customers on how they were responding to the dynamic market conditions. The analysis represents inputs from more than 100 companies across a broad range of industries including banking and financial services, construction, business services, aerospace and electronics.
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Majority of Companies Continue to Pay Rent on Unoccupied Properties Amid Pandemic, According to Visual Lease Survey on Commercial Real Estate Trends
Key survey findings include:
- Almost 30% of respondents reported that 75-100% of their leased real estate properties were unoccupied at the time of the survey as a result of Covid-19.
- More than 60% reported that they paid rent on all unoccupied properties starting in April while 17% paid rent on some, but not all, properties and only 3% paid no rent on unoccupied facilities.
- Only 17% of the customers surveyed reported that they were proactively approached by the landlords of unoccupied properties to discuss rent relief options.
“In the wake of the Covid-19 outbreak when businesses of all sizes are pivoting to save cash, the ability to keep tabs on critical datapoints in your leases has become more important than ever,” said Marc Betesh, Founder, Chairman and CEO of Visual Lease. “As the financial impact of shelter-in-place mandates and forced office closures continues in the months ahead, landlords and tenants will need to maintain an open dialogue regarding expectations for rent payments and potential penalties for failure to pay. Quick and easy access to accurate lease information will be critical to helping these companies make real-time business decisions and navigate these new market challenges.”
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