A bill amendment is advancing in the California State Senate aimed at giving hospitality property tenants an opportunity to terminate their existing commercial leases.
While senators clarified late last week that the bill should only apply to tenants facing specific financial hardships (revenue drop of 40% or more, or capacity decline by at least 25%), it still poses a major threat to the shaky vitality of CRE, as property owners already face reduced rent collections and soaring numbers of empty retail spaces.
If it passes, property owners may see their existing contracts invalidated, and be forced to renegotiate or face yet more empty retail spaces if both parties fail to come to an agreement within 30 days.
What Can Property Owners Do?
To help soothe consumer fears and foster a successful reopening of businesses, property owners and tenants must raise their own credibility and go above and beyond to earn the trust of consumers.
The most effective way to do that is to proactively seek and implement safety measures customized to each business and to consistently communicate these safety measures - completely and transparently - to tenants, employees, and consumers, to ensure their trust and sense of security inside your building.
Hit the Ground Running
EBI’s most successful clients understood that safety and transparent communication are a team effort that requires action from both property managers and individual tenants, too.
Without coordinated measures, the diligent work of one tenant could quickly be spoiled by an unprepared and unsafe neighbor.
This is particularly true for mixed-use entertainment and dining spaces - the same tenants who may soon ask for a lease renegotiation or even terminate your existing contract.
Now is the time to be proactive.
Engage a team of Certified Industrial Hygienists (CIH) who can assist with:
- Developing protocol for cleaning, sanitizing, and adapting common spaces
- Helping individual tenants prepare and deploy employee training and transparent communication to work staff and consumers
- Quickly scaling tenants' "new normal" so they can get it right from the start, and protect their consumers' trust
At EBI, we’re helping our clients do just that. Our Environmental Health and Safety experts can offer expert advice and council as you begin to re-open. With nationwide reach and local experts, we can help you understand the needs of your specific property, help you determine the best policies and procedures, and begin re-opening safely. Whether you choose to retain our services or make an introduction to your tenants (or both), our team is ready to help keep everyone safe and in business.
Send us a message today and we’ll help you get started. Or, for more information, take a look at our blog series, Interview with a Certified Industrial Hygienist, for more of what you’ll need to know before re-opening.
