2B — May 29 - June 11, 2020 — Owners, Developers & Managers — M id A tlantic Real Estate Journal
O wners , D evelopers & M anagers By James Rickard, CPA, CGMA, Withum The comm'l. office market experienceswidespread impact P roperty owners need to regularly monitor many issues and develop ap-
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ernment assistance. Consider offering forgiveness of rent for a period in exchange for a lease extension, lease renewal, or rent increase. Communicate with other property owners to see how they are dealing with tenant delinquencies. • Communicate with lenders – Many commercial properties will be unable to absorb sudden high levels of rent loss and still be able to meet debt obliga- tions. Communicate regularly with lender partners to discuss what the organization is expe- riencing and what the lender can do to alleviate pressures. Most lenders will want to work with property owners in the same way property owners will want to work with tenants. • Continue monitoring state and federal relief packages – Be active in working with local trade associations to communi- cate with government officials on the impacts being felt in the industry. Many of these packages have recognized the impact on commercial real estate owners. Have team members or service providers ready to apply for any new or renewed relief packages. Have information on resources that can be sent to tenants to ex- pedite their receipt of funding so they can better meet rent obligations. • Incident response plans should be reviewed and updat- ed – As operators continue to respond to the rapidly chang- ing environment, they should be assessing how effective and timely their response has been. Encourage open communica - tion between team members to find out what went well and what needs to be improved. Communicate with tenants to find out if they would like any - thing to be handled differently. • Evaluate expense recovery – The ability to pass through tenant costs for enhanced cleaning and preventative mea- sures will typically be spelled out in the lease. Some leases biotechnology, and pharma- ceutical industries. His areas of expertise include control systems migrations, safety instrumented systems imple- mentation and validation, instrument specification, and controller tuning. He has been involved with domestic and international capital project execution.
Owners, Developers &Managers • Continue to monitor trends in telecommuting and work- ing remotely – This was an issue the industry was closely monitoring prior to COVID-19. With unprecedented numbers of employees working remotely at this point, organizations will be assessing how effective the arrangements are and employ- ees will be assessing howmuch they enjoy it. Expect to hear both sides – those that thought it went better than expected and those that thought it was not as effective. Be prepared to discuss both scenarios. Adjust marketing materials and pre- sentations to demonstrate the many positive impacts of work- ing cooperatively, including teamwork, feedback and su- pervision of employees, social networking with coworkers, customer/client interaction, community networking, and deeper connections to the orga- nization, to name a few. Com- municate with tenants to find out their specific experiences and be prepared to address their needs the next time they are due for a lease renewal. James Rickard, CPA, CGMA is principal at Withum. will include a reasonableness qualification for such costs or may have a cap on the amount. Consideration needs to be tak- en as to how such added costs may be emotionally received by tenants dealing with financial pressures. • Continuously monitor de - velopments in the local busi- ness community – Communi- cate with the management of other commercial properties to gain insights into what they are doing to address various issues. Monitor local trade as- sociations to see what trends, challenges, and opportunities are developing.
p r o p r i a t e r e s pons e s . C o m m e r - cial real es- tate leaders s h o u l d b e considering the fol low- ing as they continue to navigate this situation:
• Prepare to continue en - hanced cleaning for an extend- ed period – Building operators across the country have quickly implemented enhanced clean- ing measures, as suggested by government officials. The length of time that these mea- sures will need to be in place remains to be determined. Con- sider closing off non-essential, or lightly used, areas to lower the costs and the related bur- den on cleaning staff. • Communicate safety pre - cautions to tenants, their em- ployees, and their customers – Stay in regular communica- tion with tenants and their employees. Many people will be working remotely, but when the time comes for them to return to their offices, they need to be comfortable that adequate safety precautions are in place. Mailers, emails, and posted notices should in- clude information about what the disease is, how to prevent it, what the property is doing to be proactive, and how the situation will be monitored going forward. • Prepare to negotiate with tenants – Many tenants have asked for, or will be request - ing assistance. Be prepared to listen and offer alternatives. Consider working with a le- gal team to create a standard amendment/forbearance agree- ment that allows deferral of rent for a one- to three-month period with a pay-back sched- ule over the balance of the lease, or upon receipt of gov- AMBLER, PA — Precis Engineering has hired Tim Capparella as senior process automation engineer. Cappar- ella’s hire provides leadership and direction for Precis’ pro- cess automation group. Capparella has more than a decade of experience in pro- cess automation engineering within the manufacturing,
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Precis Engineering hires Capparella as senior process automation engineer
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