We are in unprecedented times. We know that, but we don’t really know what it means for our daily lives, our businesses, and the immediate and medium term future.
What I can say is that if we try to stick to the letter of the commercial rules we play by – commercial leases, employment contracts, terms of trade amongst others – we will be in dire straits.
This is the time for flexibility, and for everyone to do their bit for the greater good.
If as a property owner you consult your Lawyer regarding the terms of your leases, they will tell you what your and the Tenants’ Rights are. Unfortunately, whilst that is informative, it is unlikely to provide a helpful answer to ‘what do we do in this current situation?’.
If a Tenant cannot afford to pay rent due to significantly reduced (or no) income, it is in nobody’s interests to insist that they do. Deferring the rent or coming up with innovative solutions to be fair to both Landlord and Tenant will see everyone have a far greater chance of coming out of this in half decent shape and with a future.
I spent most of last week agreeing such solutions for Landlords and Tenants alike. None of us really know where or how this is all going to end up, but what I do know with a significant degree of certainty is that fair and equitable one-off arrangements have to be made between Tenants and Landlords to get through this.
Be kind, they said. Think outside the box. Above all, be fair – and that applies to everyone. Now is not the time to take advantage of anybody.
From my own professional perspective, I know I can help. In my 30+ years in the commercial property industry in various parts of the world, I have experienced some shocks to the system.
From the Berlin Wall falling as I was working in the German market, to the UK pulling out of the European Exchange Rate Mechanism sending interest rates rocketing by 7% in a day, to two Gulf Wars, to 9/11, to the GFC.
The world moves on, but it is never quite the same. This time round, I suspect it is going to be more different than anyone dare imagine right now, and it is going to take a long time to re-establish itself economically and socially.
Here is what I am offering, and ask you to please spread the word.
My ‘phone is on, and I am extending an open invitation during this lockdown to anyone with a commercial property matter to contact me during these difficult times to have a chat.
Hopefully I can help provide some clarity, provide some background as to what is happening across the industry, and (this is my ultimate aim) provide or contribute to solutions to help both Landlords and Tenants survive and subsequently thrive once we are all back on our feet.
There is no charge. My fees are waived.
That goes against my usual line of thinking, because I think fees hold both the adviser and those being advised accountable and focus attention on what is being said.
Now though is the time to spread my net as widely as I can – as I otherwise twiddle my thumbs, not being able to get to properties I would otherwise be advising on or managing.
So, if you are a commercial Tenant, Landlord, a Lawyer or Accountant to either, a lending institution – whoever you may be – and you have a commercial property ‘situation’ in New Zealand that needs some professional input or a fresh perspective, please don’t hesitate to give me a call or send a message via the contact details below.
If, after this all settles down, we strike up an ongoing professional relationship, great. If we don’t, that’s absolutely fine.
This isn’t about me fishing for new clients, this is about me offering help to those who need it, being well placed to provide it.
In the meantime, be kind, they said. So, be kind – and fair - to one another, and let’s hope the Government soon turns its attention to some meaningful relief in this important space.
- Nigel Fletcher
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