Anyone seeing more vacancies due to the pandemic?
I was talking to a friend who owns 5 commercial buildings. He said he's losing 2 tenants this month - one is a construction supply company who's been in the (20k sq ft) building 20+ years and the other is a boat repair company who's been in the (6k sg ft) bldg over a decade.

I know retail is hurting but is anyone seeing more vacancies in non-retail sectors?
[{"id": "fvkbzhy", "text": "They\u2019re probably taking advantage of cheaper leases somewhere else.  \n\nI know my company is looking and we\u2019ve been in the same building for 17 years.", "replies": [{"id": "fvknasr", "text": "The construction company has 2 locations and they're consolidating into one. AFAIK, the boat guy  is just going to close up and retire.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fvkckrt", "text": "There will be more evictions as many are behind with rent.", "replies": [], "depth": 1}, {"id": "fvkcsmi", "text": "Recently appraised an office building with a Fortune 100 company who currently occupies 55% of the total NRA. Their lease expires in October and they are now discussing downsizing to about 20% of the total NRA. The company wants to downsize and only renew for 1 year with a 5-year option which is not typical. All of the uncertainty is making companies rethink their overall office footprint.", "replies": [{"id": "fvkzzud", "text": "This. \n\nThis late summer could be one hell of a recession, and I am not sure what but opportunity\u2019s there will be. So much uncertainty...", "replies": [], "depth": 2}], "depth": 1}, {"id": "fvkm2ld", "text": "Absolutely. I've noticed a lot of \"flavors\" of businesses closing or moving. This shock has given a lot of reasons to shut down. I know one guy who was operating a number of restaurants successfully for many years but the chain and concept behind it was already faultering, think fast casual. He was about retirement age so he shut them down (still owns the real estate), he figured this was a \"sign\" to go out on top. I know of another sp500 listed company that happened to have a lease expiring and moved out of a 50k sqft industrial space. Their business wasn't ever great at this location but this just gave the decision makers the push to consolidate operations at another under utilized facility. Had this not happened they might have spent another 3 or 5 years at the location max. I know of 2 guys one being a current tenant and another a former tenant who had marginal businesses at the best of times, scraping by, and they were dead in the water by April. Luckily my leverage is low, 30% LTV, so I'm not hurting too much.", "replies": [{"id": "fvkvla4", "text": "This is what I have seen. A lot of business owners were on the horizon to retire or change in 2-3 years, and this sped up those decisions.", "replies": [{"id": "fvlcu06", "text": "Also seems to be giving cover for some downsizing without having to fully admit things were already slipping", "replies": [], "depth": 3}, {"id": "fvlxq65", "text": "We have 250 commercial and office tenants and we have definitely seen a couple early retirements. It made sense to keep going while things were hot and now it makes sense to pack it in. We are pretty much full so we help advertise the space and try to let them out of the lease early if we find someone.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fvkv21r", "text": "I track industrial vacancies for industrial real estate for Southern California. There is a huge increase in sublease space to the extent the vacancy rate is doubling in some markets, moving from 1-2 percent to 3-4 percent. Second worst quarter on record, with Q1 2010 being the other time we had this amount of negative net absorption. \n\nBuckle up, shit is going to be bad for awhile.", "replies": [], "depth": 1}, {"id": "fvkv57b", "text": "Some companies who were already struggling are looking to consolidate their office space. A lot of office inventory has increased through acquisitions &amp; mergers and as they\u2019re watching revenues decline, they\u2019re paying attention to their inefficient office space. \n\nFrom what I\u2019ve seen, some of this downsizing was already in the cards but is now accelerated.", "replies": [], "depth": 1}, {"id": "fvl85pj", "text": "I find this comical. Hilariously funny even....\n\nNot for your friend but about the boat repair company and construction company. \n\nI have a 45' boat.... it needs engine work....i can't find a reputable boat mechanic to fix it. They're all shitty at answering their phones and responding to voicemails/ emails.\n\nI'm actively seeking out a company to build me a multi intuit\nUnit commercial building. 50% for personal use to climate control my cars and the other 50% to build out to rent to cover my cost of garage storage....\n\nIt's almost impossible to get someone on the phone. \n\nGreat time to start a boat shop or construction company.", "replies": [{"id": "fvluhnc", "text": "What sectors are you seeing growth in?", "replies": [], "depth": 2}], "depth": 1}, {"id": "fvmlaxh", "text": "I appraise multifamily all over the country and most properties we survey for comps indicate minimal impacts from COVID... Maybe five households in a 200 unit complex requiring payments plans. Calls from prospective callers remained level throughout lockdown, or if they did decrease, they're now back at typical levels. Not seeing a lot of extra concessions.", "replies": [], "depth": 1}, {"id": "fvncskt", "text": "Small tech-related business owner here, with about 1800sf rented in a NorCal office.  Our lease is up end of this month.  We're in a single-level office park with about 80 individual offices that all have outdoor entrances, none are full-service.\n\nThe landlord is doing the BARE MINIMUM to comply with the law, and frankly refuses to see an issue with the approach:\n\n* Shared HVAC between offices, but only MERV 8 filters and a promise to change them \"more frequently\"\n* No additional bathroom exhaust (a single two-stall bathroom per sex per 10 offices, none with windows)\n* No additional janitorial in common areas\n* No offer of full-service to wipe down interior office space at night (I'd contribute to cost-sharing if they did this)\n\nThis puts 100% of the burden to comply with the interior spaces on us, the tenants.  And if you read what must be done for SF Bay area offices, it's extensive.  I've tried asking the landlord to up their investment / partnership on this - but the landlord has made it clear that she will only comply with the bare minimum required by law.  For me to pick up the rest, it would add significant duties to my office admin's plate (who didn't sign up to be a janitor), and increase my legal exposure. So yeah. No.\n\nWe're shuttering the office, and not looking back. We'll reconsider actual office space in 2021.\n\nIt's a whole new ball game.  Landlords need to understand that they have to partner WITH their tenants if they want to retain them.", "replies": [], "depth": 1}, {"id": "fvsp6bu", "text": "Help manage 3 projects for 120ksf in LA/Austin and we have signed 2 restaurant LOIs, a renewal on a 5ksf flex space for a liquor producer, and working on a 5ksf bar renewal on a really tough space to lease with a crap operator we're stuck with (can't afford the vacancy).\n\nIf people are signing, they're getting deals, 10-15% off rent in our case.", "replies": [], "depth": 1}]