Covid-19 Recovery Readiness
Property owners should consider many issues and develop appropriate responses as they navigate this
- Enhanced routine cleaning for an extended time period – Professional cleaning services have implemented enhanced cleaning measures, as suggested by government officials. Discourage sharing of tools and equipment, if feasible. Confirm your cleaning contractor is updating its services to meet CDC standards. Consider closing off non-essential, or lightly used, areas to lower the costs and the related burden on cleaning staff. Our cleaning service, Ohlala Spotless Professional Cleaning offers electrostatic disinfecting and up to date cleaning methods.
- Communicate safety precautions to tenants, employees, customers and local business community – Stay in regular communication with tenants, employees, customers and local business community. Many people will be working remotely, but when the time comes for them to return to their offices, they need to be comfortable that adequate safety precautions are in place. Mailers, emails, and posted notices should include information about what the disease is, how to prevent it, what the property is doing to be proactive, and how the situation will be monitored going forward. Monitor local trade associations to see what trends, challenges, and opportunities are developing.
- Adapt office layout to encourage better hygiene and social distance – Redesign space to ensure that six feet, the recommended measurement for safe social distancing, stays between people at all times. This behavior is encouraged through properly spaced desks, and also signage. People are also encouraged to walk in lanes around the office. This one-way traffic is the same approach that healthcare workers take in hospitals to help avoid the spread of pathogens. Consider implementing facial covering requirement and other hygiene measurements to minimize exposure.
- Communicate with lenders – Many commercial properties will be unable to absorb sudden high levels of rent loss and still be able to meet debt obligations. Establish early communications with lender partners to discuss what the organization is experiencing and what the lender can do to alleviate pressures. Most lenders will want to work with property owners in the same way property owners will want to work with tenants.
- Monitor state and federal relief packages – Be active in working with local trade associations to communicate with government officials on the impacts being felt in the industry. There is hope that these packages will consider the impact on commercial real estate owners. Have team members or service providers ready to apply for any available relief packages. Have information on resources that can be sent to tenants to expedite their receipt of funding so they can better meet rent obligations.
- Incident response plans should be reviewed and updated – As we continue to respond to the rapidly changing environment, we should be assessing how effective and timely our response has been. Encourage open communication between team members to find out what went well and what needs to be improved. Communicate with tenants to find out if they would like anything to be handled differently.
- Evaluate expense recovery – The ability to pass through tenant costs for enhanced cleaning and preventative measures will typically be spelled out in the lease. Some leases will include a reasonableness qualification for such costs or may have a cap on the amount. Consideration needs to be taken as to how such added costs may be emotionally received by tenants dealing with financial pressures.
- Continue to monitor trends in telecommuting and working remotely – This was a trend prior to COVID-19. With unprecedented numbers of employees working remotely at this point, organizations and employees will be assessing how effective the arrangements are. Expect to hear both sides – those that thought it went better than expected and those that thought it was not as effective. Be prepared to discuss both scenarios. Adjust marketing materials and presentations to demonstrate the many positive impacts of working cooperatively, including teamwork, feedback and supervision of employees, social networking with coworkers, customer/client interaction, community networking, and deeper connections to the organization, to name a few. Communicate with tenants to find out their specific experiences and be prepared to address their needs the next time they are due for a lease renewal.
