NAI Executives Report from the Front Lines of the Coronavirus

By Erika Morphy of GlobeSt.com April 1, 2020

The impact of the health crises on the commercial real estate industry has dramatically changed the industry’s landscape within the space of 30 days. With April getting underway, four NAI executives offered their perspectives on the impact of the pandemic and how they are addressing the challenge. These NAI officers have some of the biggest portfolios of managed properties in the company.

Brokerage Deals

“Most transactions near fruition are still being signed, with some tenants asking to push back start dates post stay-at-home orders, or landlords asking to push back on start dates when construction may be needed by the landlord as part of the deal. Other in-process deals are taking a ‘wait and see’ approach before they sign and some early stage deals are now frozen,” according to NAI Farbman President Andy Gutman, from Detroit, MI. Dave Petersen, CEO of NAI Hiffman in Chicago echoed Gutman’s sentiments, adding that “it is a great moment to solve lease issues with rent requests that could include blend and extend term, adding personal signatures, gain improved security or other landlord rights as part of a negotiation. Empathy is important but the request for relief should not be a one-way discussion either.” In Albuquerque, NM, “we are seeing some tenants ask to go month-to-month, as well as many deals going unsigned, with others stalling deals to the degree possible due to uncertainty,” said Debbie Harms, CCIM, SIOR, CPM and CEO of NAI Maestas & Ward. Petersen pointed out, however, that “there is a great amount of focus being placed on electronic showings whether that’s the use of video conferencing platforms or actual video tours of the space available. Tenants still need space today and we have to use all tools at our resources to help the tenant and our clients to close transactions.

Click here for the rest of the Globe St. com article featuring rent relief, development slowly proceeding and what to do.