Paley Commercial Real Estate would like to offer our support regarding the impact the COVID-19 pandemic is having on the commercial real estate market. Over the past week our office has received countless calls from worried Property Owners and distressed Tenants about the challenges you are currently facing, along with what is to come.
On March 17th, the Los Angeles City Council approved an Eviction Moratorium banning Landlords from evicting both Commercial and Residential Tenants through May 31, 2020. In addition, there will be a mandated rent relief program allowing renters to not incur penalties or late fees. Tenants will have 6 months after the state of emergency is declared as ceased to pay back Landlords.
On March 19, Governor Gavin Newson issued a “Stay at Home Order” calling on people to remain in their homes except for essential travel to the market and pharmacy for medication. The Governor gave no time frame on how long the order would remain in place. California represents 12% of the nation’s population and is a vital part of America’s economy.
On March 19th, Los Angeles’ Mayor Eric Garcetti followed suit with a “Safer at Home” public order requiring more than 10,000,000 people to stay at home and most businesses to close. In addition, L.A. City is also advising banks and mortgage holders to offer Owners payment plans to aid with building expenses such as loan payments, property taxes, utilities, and maintenance. With Landlords expecting to take a major hit on rental income, all costs are being evaluated. How are Tenants supposed to pay rent when they are forced to be closed? How can a Landlord afford to pay the mortgage if their Tenants are unable to pay? Property Taxes are due March 10, what if you don’t have the funds? These are the challenges that must be addressed. Expectations are high that the Federal Government must step in and offer assistance. What if they don’t? The good news is interest rates are at all-time low, so if you are need of commercial real estate financing, there are several lenders we work offering excellent price and terms.
Our Woodland Hills office remains open throughout this crisis, and we encourage worried Landlords and Tenants to reach out to us with their concerns. We will do our best to assist with questions regarding rental payment issues, property management difficulties, or anticipated vacancies. Allow us to help you navigate through this unprecedented chain of events that only comes with more than 30 years’ experience from the selling, leasing, and managing hundreds of commercial properties. Paley Commercial Real Estate Brokers have specialized in San Fernando Valley since 1984.