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Keep briefed with our coronavirus e-newsletter. Whereas there was demand for new house, including from the likes of Netflix and law firm Slaughter and may, occupiers’ priorities have shifted, stated Mr Williams. Paul Gold, cofounder of workplace leasing company Hedge Real Estate, mentioned that slightly than hitting all rents equally, coronavirus was more likely to create a two-tier office market in the capital. Firms that have taken on lengthy-leases in the past few years would sub-allow them to to others, typically at a heavy low cost, he said. Workplace occupancy levels on the company’s estate was roughly 15 per cent, in keeping with Mr Williams, who doesn’t anticipate workplaces getting beyond 50 per cent of capacity in the following two or three months. “That’s where the massive provide line goes to return from. It will be a lot cheaper than any operator. That inevitably will affect the market,” stated Mr Gold. Derwent was also hit by lower than regular rent collection, suffering a roughly 20 per cent shortfall for the months since coronavirus hit the UK. The company is considering altering the phrases of some its leases with restaurants and retailers – which make up less than 10 per cent of Derwent’s portfolio – to allow tenants to pay rent primarily based on what they earn, fairly than as a fixed cost. So-known as turnover leases are more and more being considered by landlords trying to help hard-hit businesses by the crisis.
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