Pressure to reduce Office Space

Given the increasing prevalence of working from home - be it part-time or full-time - will finally lead to a reassessment of the use of property assets by many employers. Why pay for lavish offices - often featuring huge empty spaces in the reception area that is just for show or to polish the image of the occupying business? Even if staff works only one day a week from home that could easily lead to a reduction of required floor space by 20 percent.

Are CVA's undermining Real Estate Investment?

The widespread practice of reducing rent obligations is leading to problematic outcomes. The UK restaurant chain Leon just last December completed a CVA and today's media report that the operation is sold for an eye-watering amount, giving the founders a substantial multi-million pound pay-off. One has to assume that the sale was made much easier now that the rent bill was reduced - at the expense of the landlords one has to assume (happy to hear about details of the CVA in case you are privy to the information).