The fall in block of the Argentine economy causes unprecedented situations in the negotiation of rental prices
Real estate advisers assured that in the face of the serious situation caused by the coronavirus pandemic, local owners agree to apply discounts up to 50% on rentals, and in some cases they allow them to stay paying only expenses and expenses.
The critical situation caused by the quarantine forced small and medium merchants to seek alternatives and state assistance to try to overcome the current situation.
In this regard, real estate owners and advisers assure that the deductions in rents are up to 50% and that in some cases, they are exempt from payment in exchange for facing the expense and expenses.
Horacio Ludigliani, real estate advisor, stated: “There is a complete price renegotiation of commercial premises, especially those that had been stipulated in dollars”
“Also, with remote work, you start to think of smaller offices. Professionals or merchants realize that they can have their employees working remotely,” he explained.
As iProfessional had anticipated, homeowners and merchants are demonstrating new flexibility in negotiating renovations. The common goal is for businesses to continue in the midst of the pandemic blows.
Trade: the gradual opening will bring relief to the sector.
The rent adjustments, in dance
Ludigliani said that “the semi-annual adjustments that are going to be made are very much in dance. Contracts are being renewed with adjustments of 30% every six months.”
“Of course there are not as many office requests, so landlords are trying to renegotiate contracts to retain tenants. The trend? Offices that have good remote access technology and have separate spaces to work under are being requested. the coworking modality “, he indicated.
Daniel Zampone, auctioneer and real estate consultant, considered: “We are noticing in May that – unlike March and April – that the owner is sitting with the tenant due to the financial damage caused by the stoppage of commercial activities”
“Experience indicates that the owner understands the crucial situation of the tenant and listens to the proposal that is usually to pay 2 or 3 times. The idea is that the tenant does not leave. Sometimes they even accept discounts that can go from 30% to 50%, “he graphed.
Closed commercial premises: a dreaded scenario that comes true.
The continuity of the rental, first of all
He said that in some cases, landlords urge tenants to stay without paying rent as long as they bear the expense and expenses.
Sebastián Cantero, real estate advisor, said: “Good faith prevails. For the contracting party, the alternative is to terminate the contract but when the landlord and tenant can zoom or skype, and renegotiate conditions, in many cases discounts of 30% or 40% are accepted”
“The annual rent of the office is tied to the sale value. As there are no prices and it is estimated that there will be a drop of 30%, the rent will also fall. The situation is so critical that there may be surplus meters. squares for rent in the market but until the quarantine is opened the reality is that there are no values, “he said.
He considered that “the removal may be from 20% to 50%”.
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