The extension of the Code has proved as an immediate management structure to protect those in the commercial sector.
Realmark Managing Director, John Percudani commented on the 5-day lockdown announcement, and the impacts an extended lockdown period may have on the West Australian commercial property market.
“The health and wellbeing of West Australians is first and foremost considered above all other priorities. Generally speaking, the McGowan Government has earnt respect and trust from the State to act swiftly and respond to the pandemic situation.
“This guidance plays a key part in protecting Western Australians from the health risk, while reducing some of the economic impacts we may have experienced otherwise,” said Mr Percudani.
“We expect that a short, sharp lockdown will have limited commercial impact, but a protracted lockdown could be detrimental, and the affect will vary across the diverse commercial and industrial sectors in WA.
“It’s far too early to predict how this second lockdown may play out and its impact on property and small businesses, however it’s paramount we take a ‘steady as you go’ approach and be logical and supportive of each other. Western Australia possesses a strong economic foundation, and it has proven to quickly recorrect itself before.
“We’ve seen knowledge on the Code mature through education with tenants and landlords having a better understanding of its intricacies. Having this mechanism already in place means commercial property managers are in a position to easily react with experience and confidence, a vastly different situation to March and April 2020,” he said.
Western Australia and Victoria are the only two Australian States where the emergency period on commercial tenancies is still valid.
While appropriate legislation is already in place, experienced businesses are well-versed on operating through a lockdown situation.
“Like the real estate industry, many sectors also have procedures and strategies in place to quickly adapt. Small hospitality retailers for example have already reverted to the online orders and takeaway model that they deployed previously and were equipped and able to do so with 12 hours’ notice,” said Mr Percudani.
Our Australian counterparts have proven that a second lockdown can be completed to eliminate the virus once again, while Government announcements of a vaccine expectation date in October all contribute to a positive road to a sound economic environment in the future.
“The underlying strength and resilience of the WA economy and the property market fundamentals provide reason to be optimistic about the commercial and industrial property sectors’ ability to be resilient and adaptive during these times,” said John.
Realmark welcomes landlords and tenants impacted by the lockdown and looking for professional property advice to contact the agency on 9328 0999.
The above advice is general in nature and is not intended to constitute professional accounting, financial planning or investment advice. Please speak to your professional advisors to obtain advice specific to your circumstances.