Coronavirus Impact on Commercial Real Estate

Preparation is the single most important thing investors and property owners can do right now to minimize the impact from COVID-19 related building and service disruptions. It is critical that owners have a thoroughly vetted pandemic plan in place and have thought through various outcomes and contingencies.

Arcturus is actively working with clients and business contacts to assist with ownership, building operations, tenant relations/communications, and related contingency planning to help maximize preparedness for issues that may develop.

Top Coronavirus Real Estate Issues to Consider

Ownership issues include:

  • Owner business continuity planning (property management, leasing, financial accounting and leadership)
  • Investor communication
  • Business plan evaluation/reforecasting
  • Capital needs assessment
  • Lender communication
  • Business interruption insurance claims
  • Possible loan defaults

Property operational issues include:

  • Operational continuity planning (security, engineering and cleaning staffing)
  • Managing capital investment, repair and maintenance activities and construction delays
  • Employee and union contract issues
  • Remote system management planning
  • Building cleaning protocols
  • Supply shortage planning (operations and capital projects)
  • Government authority-mandated quarantine and building closings
  • Reopening protocols
  • Required reporting
  • Vendor default/replacement
  • Contract disputes

Lease and tenant relation issues include:

  • Communication strategy/content (current operating plans, additional protections, contingency planning)
  • Building closing triggers, protocols and notification procedures
  • Remote communication procedures
  • Rent payment default management
  • Premises security/access during building closings
  • Media relations

Arcturus continues to advise its clients to be proactive. This includes reviewing current property operations and communication procedures, implementing additional procedures where prudent, identifying contingency plans and conditions, ensuring critical supplies are on hand, and having available staffing and communication protocols in place.

Please contact Arcturus if we can help maximize the preparedness and operational success of your property during this challenging time.