Interestingly, after the stay-at-home orders, tenants and their advisors focused their lease reviews almost exclusively on the tenant’s lease obligations and whether they were excused, but spent little time reviewing the landlord’s obligations and whether they were excused.
Posts by Glenn Blumenfeld
Remote working is here to stay, and it will certainly become an integral part of the law firm work paradigm going forward. However, as law firms start to contemplate how this WFH trend will impact their office footprints in the future, they should be careful not to blindly follow what other industries are doing.
Despite children in the background and a lack of preparation, this [work from home] arrangement seems to be working. However, before we become too enamored of this new work paradigm, we should appreciate that its relative success is due only to the strong foundations that were built in the office prior to the pandemic.
Any contemplated change in design or layout by a tenant should account for the fact that, like the Spanish Flu of 1908, COVID-19 won’t be around for long. When it leaves, a company’s office design and configuration needs to make sense and needs to be cost effective. A blind rush to the latest and greatest could be very costly.
The same happens in commercial real estate. When one tenants moves out, another will be moving in. If the current tenant cannot vacate in time, that exposes the successor tenant who won’t be able to move in on time. One holdover begets another holdover. Luckily for the real estate world, these broken chains are usually few and far between and the impact can be mitigated through overtime workers, temporary space or even paying some punitive holdover rent. Now, however, we’re in completely unchartered waters.
It’s no coincidence that Amazon’s two HQ2 winning regions represent the top two homes for tech workers in the United States. Techies are more likely to live in New York City or the Beltway than almost anywhere else. So, in the end, Amazon went where the experts are. So what does that mean for Philadelphia’s Center City? It means we need to find our place in the world and make ourselves a destination for a few major industries.
The new Opportunity Zones created in the Tax Cuts and Jobs Act of 2017 (the “Tax Cuts and Jobs Act”) are the darlings of real estate right now. And for good reason. These Zones could potentially enable trillions of dollars in current and future capital gains to be deferred, discounted and even fully exempted from…
Every day at Tactix they do one thing and one thing only: fight to protect the interests of tenants in the tri-state area and make sure they get the best terms possible. Now, through the Tenant Advocacy Project, they’ll be able to extend those same tenant advocacy and protections to Philadelphia’s most vulnerable families in the residential context.
Many tenants put themselves in conflicted situations with their brokers that they would never allow, or even consider, in any other relational aspect of their life or business. Read these comparisons of situations outside of commercial brokerage to see how brokerage conflicts of interest hurt tenants, and why you should never agree to them.