Our latest online panel focused on leasing issues arising during the coronavirus lockdown in the Czech Republic. The six experts of the panel, moderated by Jaroslav Kaizr, discussed the impact of COVID-19 on current lease agreements and gave an overview of the potential immediate and long-term implications of the coronavirus crisis.
You can still sign up for our upcoming online events on leasing issues on the Polish and the Romanian markets.
According to Jan Kotrbáček, Head of Retail Agency CEE at Cushman & Wakefield, the leasing situation can be resolved only by a case-by-case approach. Although the government of the Czech Republic has announced recommendations on leasing regulations for retailers during the lockdown, each negotiation process is unique. The lockdown is only the first chapter of the crisis, the process of the recovery may take longer – a few months or even a year. During the reopening phase (the second chapter) strong support from the government and landlords will be needed to revitalize the retail industry.
Markéta Cvrčková, Partner at Taylor Wessing argued that the government is procrastinating the final decision on the state guarantees for rents. The lack of final and clear decisions by the state is prolonging the process of negotiation for landlords and leasers.
The big hit of the lockdown on the unemployment rate will be observable in the next weeks and this will have a huge effect on consumption behaviour. Even though people will get back to work, the recovery, especially on the hotel and retail market, will take longer, explained Pavel Streblov MRICS, Business Director CRE at Penta Investments.
The current crisis will have a huge impact on technology. We can expect also a big transformation in the retail sector. New technologies, like contactless shopping, drones and smart cameras will fundamentally reshape the shopping experience, added Maxim Shkolnick, Partner at Focus Estate Fund.
We can also expect a change of paradigm on the office market. The demand for flex space will increase, as nobody will want to have long-term liability after this current crisis. This may result in big changes in the office market, such as the reorganization of the office floors, bigger space per person, as well as new hygienic standards, explained Hubert Abt, CEO at New Work Offices.
