Business Rates – What next?
The scale of economic damage from the global pandemic has put significant pressure on landlords. It has accelerated the need for change, and with that, has put some landlords on the wrong side of a fundamental shift in the market.
During the pandemic, when businesses were forced to shut, the government recognised the need to take action and business rates relief for tenants was one of the first strategies they turned towards. It was then up to landlords to take the hit as struggling tenants looked to them for rent relief. Even with the government stepping in and landlords doing their bit, the end result in many cases was for businesses to go under resulting in a steep rise in vacancy rates.
This combined with the growing shift towards remote working, causing businesses to reassess their requirements for office space, has led to increased vacancies across the majority of sectors. With this added pressure and with little to no support from the government, it is now more important than ever for property owners to assess their vacant Business Rates liability as we look towards a post-pandemic future.
Whilst the occupational market recovered, costs can be mitigated and a focus on this alongside a refreshed reletting strategy can go a long way to reducing the losses in net returns