From Rent Relief to Re-Entry, Where Are Our Offices Headed?

As we progress into summer we are getting a clearer picture of the impacts to the real estate markets surrounding the unprecedented events of COVID-19. I previously wrote that property managers need to be prepared with re-entry plans as states begin loosening restrictions and prepare for the next normal. But it’s worth looking at what transpired over the past two months to ensure that we can maximize the learnings from COVID-19 should we find ourselves in a similar situation in the future.

According to new data from JLL Property Management, swaths of tenants from varying sectors are actively looking for ways to manage their real estate expenditures. Data show that such requests peaked the week of April 3 as the pandemic unfolded, and have tapered off through the beginning of May. The report looks at data from across the U.S. from the early stages of the COVID-19 pandemic through May 11, 2020. The review covered a subset of JLL’s office and non-office property management portfolio including 620 properties and more than 8,500 tenants. It’s clear that while some sectors were hit harder, no one has been immune from the impacts of this incredibly fast paced market shift. The volume of rent relief and abatement requests show how state- mandated closures and stay-at-home orders have put increased pressure on how companies across the spectrum view their real estate costs.