There is no denying that a lot of things have changed in a short amount of time for people here in California and around the world. The question then becomes how these changes will affect the future, and nearly every individual and every industry is asking that question right now. The fact is that many markets, including the commercial real estate market, will probably see some changes.
Many businesses already feel the financial sting of the current situation. It may not be until next year before some of them can even consider anything resembling normal. In the meantime, many offices, shopping centers and other retail establishments are no longer able to afford their rents and/or mortgages. Some need to move out of the spaces they currently occupy because they cannot afford them.
Companies that rely on foot traffic, people traveling and otherwise gathering in large numbers are already feeling the impact. What only took weeks to essentially grind to a halt could take months or longer to recover, if at all. How will this affect landlords? Well, they may have to rethink their long-term leasing structures since many companies will be gun shy when it comes to committing to such a rental agreement. Tenants may also need to make certain adjustments as well.
It could be some time before the commercial real estate industry truly knows the effects of recent events. In the meantime, California landlords and tenants alike are in uncertain territory. They may need some guidance regarding how to deal with the legalities surrounding the current situation.