As business emerges from the shock of lockdown, attention is shifting towards future business planning.
Many business are already examining their property footprint and what changes should be made and at what cost.
Some retailers are limiting or even in some cases ceasing their presence on the high street. They will be examining their leases for break clauses or trying to negotiate surrenders of their leases.
Many tenants in all sectors will want to try to protect against further shocks and if they are in a position to do so, asking for additional break rights and rent suspension clauses in the event of further lockdowns.
Some working patterns adopted during lockdown will impact on longer term working habits and again on the property footprint.
The appetite for large city centre office space will surely be challenged, although physical spaces for people to meet and share ideas will be as important as ever.
Businesses will need to adapt and be imaginative in the way they use their property assets.
Changes in our use of office space and retail space have been coming for some time, but the urgency of those changes is now real.
A clear sighted look at how a business uses its property should be part of any examination of the viability of a business in the new normal.
For more, email Commercial Property Partner Clare Regan on clare.regan@mfgsolicitors.com
Clare is part of the Firm's Restructuring and Insolvency Sector.
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