John Giorgi explains the impact of COVID-19 or Coronavirus pandemic has mainly been disruptive in terms of economic activity and a loss of human lives. Almost all the sectors have been affected primarily by the spread of this pandemic. The outbreak of COVID-19 has affected every human being in some way or another. The economy of the world has gone into recession with minimal industrial activity. Indeed, many people have also lost their jobs during this time of crisis. And this moment, the entire world is buzzing with skepticism and questions as to how long this coronavirus pandemic will last, says John Giorgi.
COVID-19 is still entailing numerous proprietors and occupiers of commercial properties. Multinational companies are still bargaining with real estate laws and regulations and practices that vary considerably across the jurisdictions. Mentioned below are some questions going through the landlords and the tenants’ minds during this uncertain time when the whole world is facing a crisis.
- Does a tenant need to pay the rent if it cannot use the property?
- Are there any other additional emerging trends key issues for proprietors and the tenants?
- Is it possible for the parties to claim that the lease contract is frustrating and therefore terminated by COVID-19?
In general, there are no possible answers for these issues in any jurisdiction. This uncertain time can be considered an escalating situation where authorities are issuing advice daily. Therefore it is significant to assess the effectiveness of any proposed action with care based on the cases and in the light of the most recent information.
Some ways real estate will change forever says John Giorgi
With COVID-19, everything will change, for instance, how people work, play, live, and learn and its impact on daily activities. There will occur a drastic change like the home, the retail zone, and the office. The critical issues of this modification will be decentralization, redistribution, and restructuring.
Home as the key driver
More importance is given to the home nowadays than the place of work. People prioritize real estate investments since they provide a higher sense of security to them, especially during a crisis when the financial possessions are under pressure. It has vanished the constraint of living near the workplace if not for all, then at least for some. So the people prefer to move away from the congested and polluted parts of the city. People consider owning a home in the suburbs as a better option than paying higher rents in the city center.
The new office
You must be aware that institutional investors highly favored the commercial office sector, and in terms of pricing, this was at the peak before the pandemic. Spaces that smaller companies and start-ups occupy are now facing the problems of funding. These days smaller commercial buildings without central air-conditioning open independent offices are also more in demand.
With people giving more priority to online shopping, a massive change affected the physical stores. After the coronavirus pandemic, there will also occur a difference in the demand for the retail space. People prefer rooms that are open to the sky. The shops and showrooms will then have to remove air-conditioning. It will also minimize standard area maintenance charges.
With the coronavirus pandemic, the world has changed dramatically, and people do not know when this crisis will get over. The outbreak of coronavirus has severely disrupted the global economy. The whole nation is still struggling to prevent the transmission of this disease. This article will know how the outbreak of COVID-19 affected real estate and how it has changed forever.