I’ve learned a lot in the last few weeks that I haven’t shared on Twitter. So much. But yes, here are a few tidbits:
Commercial property owners downtown Vancouver, about 30% of retail and restaurants told them they give up. No plan to every re-open. Walking away.
Commercial property owners downtown Vancouver, about 30% of retail and restaurants told them they give up. No plan to every re-open. Walking away.
This was as of the end of March. Almost all other restaurants and retail informed their landlords they simply couldn’t pay. Basically only a handful paid their rent April 1. Landlords are panicked and allowing it to slide to try and keep the tenant. Offices are the next issue.
Most offices also sought a break from the landlord. Landlords have decided to enforce leases and personal guarantees (for now) because they don’t have the same concerns re vacant storefronts. They all concede rents will drop but not for leases.
Bankruptcies: one line in a reply email discussion with one of my banks, the employee told me the bank expects 40% of all businesses will go bankrupt. I assume this is what they’ve been told and figure is what’s going to happen. Now, real estate:
Two realtors informed me that two properties (one I had looked at) were back on the market, couldn’t close. A third went for 20% less than the agreed sale price so that it could close. I’m seeing lots of new residential listings. Commercial could be worse yet.
Damned typo.
As we near May 1st I expect a lot of panicky shit will start unfolding. Anxiety is going to be overwhelming for many people. I noticed it in the days leading up to April 1.
Offices with 2 floors and a 10 year lease? Are the investors going to pony up some dough? Maybe they will.
Offices with 2 floors and a 10 year lease? Are the investors going to pony up some dough? Maybe they will.
