Landlords chipping in
Commercial landlords in New Plymouth are helping tenants with rent reductions during the sharp drop in income from the coronavirus alert level four lockdown.
New Plymouth landlord Craig Williamson said the number of his tenants who asked for rent relief had tripled in the past month.
‘‘In April I had a quarter of my tenants ask for rent relief, now three quarters of them are asking for support,’’ he said.
‘‘It’s all about cashflow for many of them and at the moment they are closed and there is no cash coming in.
‘‘They’ve used up their reserves, their backs are against the wall and they’re crying for help.’’
Williamson said landlords can give rent holidays, or reductions but this cannot go on forever.
‘‘Rent holidays have to be paid back at some stage, and we have fixed costs like mortgage interest, rates and insurance.’’
He said his bank was allowing mortgage holidays on his principal repayments that was helping him with his cashflow.
‘‘I can then pass this onto my tenants who need it,’’ he said.
Strict level four restrictions eased at 11.59pm on Monday when the country dropped to alert level three.
While all workers who can work from home should continue to do so, retail and hospitality operations can open if they provide contactless purchase and delivery.
With the exception of supermarkets, dairies and petrol stations, shopfronts cannot be opened.
Some trades can also resume, if they can be carried out safely and ensure social distancing at all times.
New Zealand’s alert level will next be reassessed on May 11.
New Plymouth developer John Shewry said he had negotiated discounted rent payments for tenants over the longer term.
‘‘It’s important to have a strong relationship with the tenant and get the conversation going with them and support them.
‘‘They can’t open their doors to do business so you can’t expect them to pay full rent.’’
Shewry said it was crucial for the business community and councils to look ahead to work together to find solutions for their tenants.
‘‘We need to encourage activity in the CBD, without it you won’t have a town,’’ he said.
New Plymouth chef Jeremy Webling
‘‘They can’t open their doors to do business so you can’t expect them to pay full rent.’’
New Plymouth developer John Shewry
said he had been able to keep up with rent payments while his inner city restaurant Fork and Knife, and burger joint The Arizona were shut and staff had received the 12 week wage subsidy.
Colliers International commercial real estate agent Benet Carroll was optimistic for New Plymouth’s commercial retail sector rebounding after the Covid19 restrictions had passed.
There were seven industrial sites and three inner city office developments ‘‘ready to commence’’, he said.
‘‘We are likely to see some businesses struggle to regain lost ground from the lockdown and expect to see an increase in sublease opportunities,’’ he said.
‘‘There is strong demand from tenants for industrial space, and we expect A grade properties with proven tenants in good locations will continue to sell well, particularly those properties with tenants which are deemed to be essential services.’’
Carroll said there was optimism the region would ‘‘come out the other side without too much pain.’’