The pandemic enforced prolonged closure of offices which was a massive set up for the office space owners and landlords because of the complexities in the rent paying model. A few landlords could afford to offer waivers to retain their existing tenants by restructuring the lease.
This latest story by JLL India (source) shares detailed insights and working models for how lease restructuring can a win-win solution for the landlords and the tenants. For example—”In case of multiple leases with the same landlord, tenants have the option of blending rents, escalations, lock-in etc to arrive at mutually beneficial terms for the cumulative portfolio.” says this JLL post.
The commercial real estate is already undergoing change because of the changing customer behavior whether in using office space, or for retail and entertainment. Smart investments, and visionary strategy go hand in hand to set up a sustainable business model.
Planning to hire the tenants for longer lease works in the favor of landlords so that they do not need to go through the entire cycle of finding new tenants. The real estate owners in Mohali Aerocity and on different projects on the Mohali Airport Road such as Aero Arcade Mohali can adapt to these changing tenant sentiment so that it is a win-win transaction for both the parties.
[…] The landlord tenant relationship is already changing because of the pandemic induced changes in the operational costs and budgets in running the offices, and the change in working model itself such as hybrid work use cases. So, lease restructuring is already part of the landlord tenant relationship. […]
[…] The commercial real estate is already planning the business complex and office space, differently. The landlord-tenant relationship is changing because the hybrid model brings a different set of working conditions. So the terms and conditions of the lease contract are changing. […]
[…] the businesses worldwide to adapt the remote or hybrid work models. Since it directly impacts the landlord-tenant relationship for the leasing structure, the commercial real estate owners are rethinking their product design […]
[…] preparing itself for the change in office space design practices for remote work or hybrid work. The lease strategy is changing, and the tenants’ priorities are also different because of the pandemic-induced changes […]