In Australia, the year 2020 was met with escalating bushfires. This brought about the devastation to lives and livelihood. That happened at the start of the year. By March, the COVID-19 Pandemic brought the whole world to a standstill. And while learning the impact of this virus on people’s health, we are also still trying to recover from the economic impact this global pandemic had brought on us all.
So, we sat down with the leading commercial property manager in all of Sunshine to discuss the ramifications of this pandemic to the real estate industry. Lilian Dinh is the Commercial Property Manager for Create Vic Real Estate. She manages the whole portfolio for the agency and deals with leasing properties and managing them as well.
Q: 2020 was a tough year for Australia, particularly Victoria with COVID lockdowns/fire and more. We are now in 2021 are there are still constant constraints. How are you finding the commercial market?
A: I can professionally say that the commercial market has been most impacted in the real estate industry. There has been a significant incline in vacancy and decline in property value as most Landlords and Tenants have had to reduce the rent for the COVID-19 Period or reduce the rent in the Lease completely.
However, where there is a decline there will be a rise in the market shortly. As I do believe that more people will be actively wanting to open businesses or expanding their own businesses once COVID-19 has ended – there will be an increase in demand for the Commercial sector soon.
Expect Leased Boards/Sold Boards everywhere to come!
Q: How have you adapted?
A: I would personally say that I have not fully been adapted to the situation that all Victorians are in. If someone were to tell you that they have accustomed to the current environment, they are lying. No one can predict that this was to happen or plan for the unknown, however, our obligations as agents are to ensure we are following the Legal requirements set out by the government and it is my mission to ensure that we are showing empathy to Tenants and Landlords. It has been a tough time for everyone, a little understanding goes a long way.
Q: What are your clients’ biggest concerns?
A: The most common and biggest concern would be the COVID-19 Lockdown. A lot of businesses were impacted by these restrictions, enforcing others to downsize, or closing some off completely. Therefore, there was an increased rate of Commercial Vacancies – along with Rental Arrears going through the roof!
However, I always ensured to keep communication fully open and clear for both parties, which made it easier for understanding leading to negotiations. It was not easy, but it was definitely worth it in the end.
Q: What makes your approach different?
A: My approach has always been simple, being honest. As times have been crucial and difficult for everyone – I have always showed empathy and support to both Tenants and Landlords – always advised on what was achievable and the possible outcome that this pandemic would bestow. A little compassion and empathy, goes a long way.
And we totally agree! At this time of global crisis, we should always look out for others, not just ourselves. Because this is the only way for all of us to get through this. Whether we are sitting at opposite sides of the Leasing/Rental tables, we should still have compassion and empathy. And we should always keep in mind what the World Health Organization says, ‘We are stronger together’!