by Brianna Crandall — February 19, 2021 — Visual Lease, provider of lease optimization software, has just published its lease market trends report, which explores how the leasing industry has changed as a result of Covid-19. In 2020, the pandemic affected nearly every business, but had a particularly notable impact on the commercial real estate market. Rent disputes, lease abandonments, and, in some cases, court battles carried on throughout the year, impacting landlords and tenants across the globe. Although the future remains uncertain, there are many signs of recovery for the commercial real estate space, finds the report.
In the report titled 2021 Lease Lifecycle Management Trends Report: Identifying Insights into How the COVID-19 Pandemic Affected Landlords and Tenants, Visual Lease explores how its customers have fared since the pandemic began, and how they are managing their businesses in 2021. Survey respondents spanned across several industries, including retail, manufacturing, technology and healthcare, among others.
Key survey findings include:
- Roughly three in five (59%) companies reported a loss in revenue since the start of the Covid-19 outbreak in March 2020.
- 80% of respondents expect the financial impact of COVID-19 on their business to be short-term – over half (54%) of respondents expect to recover in less than a year, while 26% say they have already recovered.
- Of the companies surveyed, 50% received monetary relief to combat the challenges associated with Covid-19.
- 38% of respondents reported that COVID-19 related terminations have impacted the number of lease agreements under management.
- More than one-third (39%) of respondents had no plans to downsize office space while 18% already had done it – 37% were considering/planning for it.
- 16% of those surveyed said they were open to co-working spaces vs. large facilities for office space.
Marc Betesh, CEO of Visual Lease, stated:
In 2020, we saw more shifts in the commercial real estate industry than ever before. Companies had to adjust their business strategies to accommodate employees, government mandates and the changing economy, which led to new challenges and an acceleration of trends that we were seeing pre-pandemic. In 2021, the impact of Covid-19 will still be a factor for many organizations. However, we are optimistic that this year, the industry will continue to find innovative ways to adapt to the new landscape.
To learn more about key findings from the report and how lease optimization can unlock financial opportunities, join Visual Lease for a webinar on Tuesday, February 23, at 12:30 p.m. ET.
Visual Lease lease optimization software is used to manage, analyze, streamline and report on lease portfolios. Developed by lease professionals and CPAs, it combines GAAP, IFRS and GASB-compliant lease accounting controls with easy, flexible and automated lease management processes. More than 700 of the world’s largest publicly traded and privately owned corporations rely on Visual Lease to control their lease portfolios, integrate with their existing business systems, and maintain regulatory compliance. Committed to ongoing innovation and exemplary customer service, Visual Lease helps organizations transform their lease compliance requirements into financial opportunities.