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Guy

Guy

Level 2

18 Mar 2020

What will be the impact of COVID-19 on commercial retail space/rents over the next 12 months?

I've read many articles about how the coronavirus has hurt businesses and the economy. What are the extent of the impacts and should I be worried?

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    Discussion (2)

    What are your thoughts?

    I take opposite view vs Sudhan. I think the situation will be contained by June as all governments are taking stronger action by now.

    The problem is can the shops survive until June?
    The smart ones will...

    • Restaurant cannot do eating in will just have to adapt to doing takeout promos, prepackaged meals

    • take the pain and straddle labor accordingly to manage costs

    • develop automated self check out counters

    • make more use of vending machines

    I guess things will be bad, but I don't see doomsday. If you want to survive, you will do what is necessary, and governments are already giving a lot of help, plus interest rates are coming down.

    Those that can't just have to tweak or change their business model to survive in the long run.

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      Sudhan

      Sudhan

      17 Mar 2020

      Level 10·Content Strategist (Investment Lead) at Seedly

      Hi Guyi Shen, my take is that if the coronavirus pandemic is prolonged, and we go into a recession, people could curb their retail spending extensively, affecting the sales of retailers in the process. That could then cause retailers to shutter their stores. With a higher supply of retail space than demand, rents could fall, until an equilibrium is reached. ​​​

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