How Business Will Navigate the Post-Pandemic World
Herrick partner Dena Cohen was quoted in Crain's NY Business discussing getting back to work post COVID-19 and what office leasing and retail may look like in the near term.
"It's a hot topic of conversation whether buildings or employers can mandate temperature-taking before allowing people into the building or the office," said Dena, "Some people say it's an invasion of privacy."
Discussing what may happen next for office leasing as workers return to their buildings after many have seen the flexibility and benefits of working from home, "We can't hide from the fact that over time there may be pressure on the office-leasing market as people realize they can work from home... There was a trend in this direction, and this has just accelerated it."
Dena also examined what was happening to retail's bottom line as businesses prepare for social distancing, protective measures and limited consumer capacity saying, "The challenges that existed before COVID will still exist... That's probably something I would expect to see in the near term, but hopefully that's not the new normal."
When asked about a common strategy used for large shopping malls where the lease is structured so the landlord is paid a percentage of the retailer's revenue Dena commented, "I'm not sure if that's a sustainable model because of the expenses that landlords have. I realize smaller retailers will not survive, but hopefully with the [Paycheck Protection Program] loans that are made, they will work out a deal with their landlord or they are deferring their rent so they can stay open."