Sunday, September 14, 2025

Retail and Office Tenants Anticipate Increasing Costs, Reduced Revenue Due to Coronavirus

As a result of the coronavirus pandemic, the commercial real estate industry has been struggling to make ends meet while adhering to ever-changing health regulations. According to a recent Colliers Canada survey which sampled 445 various-sized tenants across the country, both retail and office tenants have been significantly impacted since the implementation of economic lockdowns and strict stay-at-home orders.

The report found that of the 148 retail tenants sampled, 93% are anticipating an increase in overhead costs as a result of adhering to government health regulations, while another 10% said they are planning to close down their business. Furthermore, 37% of tenants are expecting to have approximately 75% of their workforce back before the end of summer, while 74% of retailers are currently exploring additional sales avenues such as online sales. This comes amid many retail tenants expecting revenues to only reach 45% of 2019 sales revenue.

Out of the 163 office tenants that were surveyed, 47% are expecting a reduction in office space not only due to a decrease in employee numbers, but also because many employees have opted to work from home. As a result, 64% of office tenants are in the working of redesigning their businesses, while 41% said they have been actively investing in technology to adapt to changing times. However, survey respondents have also noticed that productivity has fallen by approximately 22% since employees have been working from home.

Information for this briefing was found via Colliers Canada and Newswire. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Soma Gold Q2 Earnings: Production Drops Amid Growth Effort

Guanajuato Q2 Earnings: Things Are Going Backwards

Electric Metals: The Sole US Domestic Source Of A Critical Mineral?

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

CFIB: Canadian Small Business Owners In Dire Need Of Government Financial Support

The Canadian Federation of Independent Business (CFIB) has released the results of a recent survey...

Thursday, May 21, 2020, 08:02:00 PM

Canadian Home Prices Reach Record-High Despite November Sales Slump

Although November home sales in Canada showed signs of a slight erosion from their historical...

Wednesday, December 16, 2020, 10:22:43 AM

IATA Updates Projected Revenue Loss to $314 Billion for Global Airlines

The International Air Transport Association (IATA) has issued a statement, addressing the current aircraft grounding...

Tuesday, April 14, 2020, 06:47:32 PM

CMHC Reiterates Forecast of Housing Price Drop as COVID-19 Market Risks Contribute to Vulnerability

As Canada’s housing market continues to defy the coronavirus economic downturn with booming demand and...

Monday, September 21, 2020, 05:26:30 PM

Toronto Housing Market Slumps From Record Highs in July

Canada’s largest housing market is beginning to show signs of cooling off, as sales levels...

Friday, August 6, 2021, 11:19:00 AM