We have just released our latest Secret Agent report!
What started out as a health crisis in Wuhan China has quickly become an unprecedented global problem. The implications for people’s health and the overall health care system is dire. Financial markets have been left reeling as the lock downs have created large revenue disruptions to businesses; the forward-looking nature of markets—its speciality—is struggling to price what remains an uncertain future.
Australia, has been tremendously successful thus far, of containing the virus. Thanks to our lucky geography—an island continent—and an adhering society, that has accepted the current social distancing measures implemented by the Government. Yet, our main weapon: social distancing—creates an economic problem; particularly within the commercial property market.
Landlords, Tenants and Banks are in a bind. Social distancing has rendered many commercial properties unusable, while the underlying financial commitments remain in place. The Morrison Government has implemented a mandatory code that landlords and tenants must adhere to. Yet, the situation remains a precarious one. This report examines the impact of COVID-19 on commercial property. Will the current impact on commercial leases survive the downturn, or will the current social distancing methods cause deep problems for commercial property that could threaten the wider economy? We do our best to examine the issues at hand and what can be expected to follow as we approach “the other side” of the virus’ impacts.
Access the Rent Shock report now!