Scott Marriott discusses the impact of COVID-19 on the real estate sector.
“Landlords are incredibly concerned about their prospects of collecting rent on the June quarter day, by which time the majority of retailers will have been closed for three months.”
In our latest new reality video Scott Marriott, Director in Restructuring, KPMG in the UK, discusses the effect that COVID-19 has had on the real estate sector.
“The biggest challenge facing most businesses now is how they occupy property going forward if social distancing restrictions remain in place for an extended period.”
Some of the main concerns for businesses renting real estate are:
The latest MSCI indices reported that all commercial real estate sectors had seen a reduction in capital value in the last few months. The magnitude of these monthly falls in value are rare and unprecedented outside of major events such as the global financial crisis and the Brexit referendum.
This puts incredible pressure on companies who are heavily leveraged and could result in them breaching loan covenants. With so many sectors now likely to go through significant structural changes, the path to recovery is unclear and likely to take time.
Discover more insights on the way that COVID-19 has affected the real estate sector.
© 2020 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.