THE CORONAVIRUS pandemic has prompted huge changes in property leases, according
to a Thames Valley law firm.
Gemma Smith, associate solicitor in Blandy & Blandy’s Commercial Property team, said the virus will lead to more flexible leases.
“Tenants are likely to remaina cautious for some time following the pandemic, given the uncertainty and loss of turnover suffered by a great many businesses,” she said.
Ms Smith predicts shorter terms or more tenant break options in the future, to give businesses more security over their property leases.
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She also expects rents to become more fixed or capped, putting tenants in a better position and guarding them against future drops in turnover.
“Tenants may seek a rent suspension in the lease as further protection against this or future pandemics, for example triggered if non-essential shops are forced to close as we have seen numerous times over the last 18 months,” Ms Smith added.
But she said it all depends on if landlords can protect their own interests.
For more information on the future of commercial property leases, visit www.blandy.co.uk or contact law@blandy.co.uk
