Occupiers and landlords of commercial property should partner on a path towards full economic reopening by taking decisive action to address commercial rent challenges, says the CBI.
The CBI believes commercial property tenants should resume paying rents as normal when emergency coronavirus legislation protecting businesses from evictions and statutory demands ends on June 30, except in cases of extreme financial difficulty caused by this year’s lockdown measures.
A CBI position paper proposes that firms in the hardest hit sectors should continue to be protected for a further six months, with companies which can demonstrate lockdown-related falls in revenue of more than 30% in 2021 given additional breathing space.
But with almost nine in 10 firms now open, continued government support for business costs and the easing of social restrictions, an extension of protections for commercial tenants should only support those in most need.
The CBI proposals aim to ensure the majority of occupiers are paying full market rents from June 30, when the current protections end.
The CBI also recommends that unpaid commercial rent debt accrued during lockdowns – up to June 30 – should be ringfenced and negotiated separately between occupiers and landlords. Many tenant-landlord relationships have reached satisfactory
link source - East Midlands Business Link - Property