Commercial real estate is under pressure and Galetti’s John Jack is one of many within the industry urging the government to reinstate real estate services to avoid further losses.
He is also calling on the government to work with the sector to ensure its sustainability and productivity. “Commercial real estate is under major pressure and is only set to re-commence at Level 3.
“Time is against us. Our industry has been severely impacted by the Covid-19 crisis and, with no form of recourse in sight, the industry has taken a major financial hit due to non-payment by tenants.”
He adds: “Our services have a direct impact on conveyancers, banks, transfer duties and business advisory.” Companies operating in the corporate real estate advisory sector are seeing a “significant increase” in their workload and are spending most of their time advising tenants on how to restructure their agreements and engage with their landlords. “While a lot of our work can be done from home, site visits remain critical to our industry.”
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For this reason, Jack proposes that site inspections be carried out independently, while the remainder of work functions are conducted from home.
“The number of people impacted versus the economic value is very low, therefore, the operational densities are not even a consideration.” He urges the government to work with the sector.
“Recouping our losses is vital to the stability of our industry. “As a key player, we urge the government and businesses to work together to ensure our sustainability and productivity in the longterm,” Jack says.