The future of leases after Covid-19 - evolve or perish?

Leases no longer suitable post-Covid

clock • 4 min read

Leases have historically been slow to evolve. Traditional fixed rent leases are inherently predictable and inflexible, with a focus on security of occupation for tenants and income for landlords.

This comes as no surprise given that, after staffing costs, the largest overhead for most businesses is real estate. However, in recent years there have been nudges towards greater flexibility and innovation, and the Covid-19 pandemic has thrown the suitability of traditional leases into question. The uncertainty created by the pandemic means there is considerable appeal for many in finding more flexible workspace solutions, provided through shorter term rolling contracts with smaller initial investments. This allows tenants the opportunity to move, expand and contract according to busin...

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