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Specialist sectors (those considered ‘essential’) such as service stations, medical/pharmacy, liquor, supermarkets, and childcare should rebound considerably better without necessarily performing at the same levels as pre-COVID19.

The industrial sector will be the least impacted.

The goal will be to maintain productivity and reduce occupancy cost overheads.

The office sector will see businesses re-assess their space needs immediately due to flexible arrangements with employees working remotely.

Retail tenancies may need to be re-aligned to an office, service retail or in the extreme, residential use.

Vacancy periods averaged 5.5 months for our leasing stock – expect this average to increase to about 8-9 months.

The retail sector will see vacancies rise.

We do not expect businesses to perform at pre-COVID19 levels.

Expect an initial burst of activity as the Government begin to relax community and business trading conditions in the coming months.

Our view is that while there will be an initial “sugar hit” we will be in for some challenging times. As businesses start to open up and that light begins to brighten, we all hope that it will be life as we knew it. Over the last six weeks, it has simply been easier to do nothing and hit the pause button and just wait and see what happens. The one certainty that we can all agree on is that businesses are extremely cautiousabout making decisions. The industry is really “making it up as it goes” as no one truly has the answers or experience to provide the road map. The impact on businesses from this shutdown and the flow on effect to the commercial property market is yet to be played out in full. Thrust into a “rent relief” world and a mandatory code of conduct that has created a whole new world of negotiations for rent free, rent deferment and in some cases tenants making their own call and just refuse to pay rent at all. The past 6-8 weeks has been the biggest roller coaster ride we have seen. But the question really is what will be the new normal? What does a post COVID-19 commercial property market look like?Īs restrictions are lifted in Victoria this week, there appears to be a light at the end of the tunnel and hopefully a shift towards some normality.