Visual Lease, the leader in lease accounting and management software, today released findings from a recent customer survey that probed the impacts Covid-19 is having on the commercial real estate market. With the global pandemic pushing the overall real estate sector into previously unchartered territory, Visual Lease sought feedback from its corporate tenant customers on how they were responding to the dynamic market conditions. The analysis represents inputs from more than 100 companies across a broad range of industries including banking and financial services, construction, business services, aerospace and electronics.
Key survey findings include:
- Almost 30% of respondents reported that 75-100% of their leased real estate properties were unoccupied at the time of the survey as a result of Covid-19.
- More than 60% reported that they paid rent on all unoccupied properties starting in April while 17% paid rent on some, but not all, properties and only 3% paid no rent on unoccupied facilities.
- Only 17% of the customers surveyed reported that they were proactively approached by the landlords of unoccupied properties to discuss rent relief options.
“In the wake of the Covid-19 outbreak when businesses of all sizes are pivoting to save cash, the ability to keep tabs on critical datapoints in your leases has become more important than ever,” said Marc Betesh, Founder, Chairman and CEO of Visual Lease. “As the financial impact of shelter-in-place mandates and forced office closures continues in the months ahead, landlords and tenants will need to maintain an open dialogue regarding expectations for rent payments and potential penalties for failure to pay. Quick and easy access to accurate lease information will be critical to helping these companies make real-time business decisions and navigate these new market challenges.”
To shed further light on how the market is being tested, Visual Lease recently launched a monthly Covid-19 impact panel discussion, bringing together its customers, accounting and professional services partners and industry thought leaders to share timely information related to managing leased properties and equipment from a tenant/lessee perspective in this rapidly changing landscape. With more than 20 years of domain expertise in lease management and accounting, Visual Lease is well-positioned to inform and help the businesses it serves prepare for what’s next.
Visual Lease provides lease accounting and lease administration solutions that help companies manage, analyze and report on their leased assets, including real estate, equipment and vehicles. The company’s SaaS platform is designed to provide visibility, control and compliance to ASC 842, IFRS 16 and GASB 87 accounting standards, to manage the full lease lifecycle.
To view a recorded version of Visual Lease’s recent online panel discussion: “Two Months Into Covid-19″, visit: https://register.gotowebinar.com/recording/5581388610645342987
View the complete dataset at the link here.
About Visual Lease
Visual Lease provides lease accounting and lease administration software solutions to help companies manage, analyze and report on their leased asset portfolios, including real estate, equipment and more. The company’s SaaS platform combines GAAP, IFRS and GASB-compliant lease accounting controls with sophisticated and flexible lease portfolio administration. Over 700 of the largest publicly-traded and privately-owned corporations, retailers, hospitals and institutions around the globe rely on Visual Lease’s cloud-based SaaS platform to meet operational and compliance requirements. For more information, please visit visuallease.com.