The commercial property sector is expected to undergo dramatic restructuring. It is also expected that there will be many business failures connected to the sector which is burdened with massive debts.

In April, figures from Remit Consulting showed there was a shortfall of more than £5 billion in rent collections for commercial properties.

Landlords of all sizes have been affected, with retail being particularly damaged by the pandemic.

There are now signs meanwhile, that retail landlords are seeking to recoup lost income – British Land, for example, has told tenants that it will stop allowing concessions on rent since shopping centers are now open again for business. There must remain questions though that this could be a hammer blow for retailers who are already close to insolvency.

Here at Company Debt, we have significant experience in both closing and restructuring property businesses. Get in touch for a free, no-obligation discussion about your situation with one of our licensed insolvency practitioners.

Property Pressure Points

Switch to home working
Shortfall in rent collections
Change of use will favour well capitalised

What are the Reasons for Property Insolvency?

There is now a clear shift away from office space to home working, which will be bad news for commercial landlords.  This may well mean that leases for large headquarters are not renewed, as businesses downsize. Already, there have been insolvencies in the serviced office sector, including iHub Office, which blamed the pandemic for closure.

Although there is now a gradual return to office-based working, rents remain under pressure and there is a glut of available commercial property. The next few years are expected to see further change, as office space is converted into housing, which is a strategy that will favor major property companies – although this will not always be a solution and some experts have questioned whether this will meet green building regulations. Property companies are also planning to focus more on student housing and warehousing, which are seen as more resilient options for the future.

Help for your insolvent property business

If your property business is experiencing difficulties, you should not delay seeking advice. Business owners need to address problems and if they put this off, then their options become more limited.

Company Debt provides expert support and advice on the next steps for an insolvent business, whether rescue, recovery, or liquidation.

Knowledge – Insight – Solutions

We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.

Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.

We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.

As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.

Book My Consultation

If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.

  • Your free consultation will be led by one of our experienced London insolvency practitioners
  • You can speak via phone, online meeting or in person so that we can listen carefully to the facts about your situation
  • The team will provide a preliminary view of the likely best outcome, proposed strategy, and the likely cost
  • We specialise in helping limited comany directors needing immediate professional debt advice

 

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