Allard Shelton Director and former REIV President Joseph Walton believes the Victorian Government has shown a lack of understanding when it comes to the pandemic's impact on the state's commercial real estate sector and its importance to the state’s economy.
Victorian Premier Daniel Andrews needs to demonstrate greater judgement in relation to the state's commercial property sector, recognise its importance to small business and allow in-person inspections to resume, former Real Estate Institute of Victoria President Joseph Walton says.
It's been just over a week since Mr Andrews announced that private inspections for purchase or leasing of Victorian residential properties could recommence, giving a much-needed reprieve to home buyers and sellers.
But the updated restrictions did not include commercial properties, with the sector now forced to wait until the next step in the roadmap is unveiled on October 19.
Mr Walton, who is the Director of commercial agency Allard Shelton, said the decision appeared to lack in common sense and struck as "completely inequitable".
"Unlike residential property, the commercial property opportunities available in the market for lease or sale are vacant or largely inactive given the inability of many small businesses to occupy their properties, due to the current restrictions," he said.
"Therefore, they present far less risk of transmission.
"The Andrews Government needs to make decisions, regarding COVID-19 related restrictions, based upon a robust analysis of risk as opposed to the nonsensical manner through which decisions are currently made.
"Upon doing so, the state government would realise that commercial real estate inspections represent no risk to the threat of further infection.
"Small business needs an opportunity to deal with its significant property issues."
Mr Walton said the omission of commercial property from the most recent announcement was another blow to landlords, many of whom had already been forced to provide much-needed rent relief to their tenants.
"It means landlords who have demonstrated support for their existing tenants and provided generous rent relief are still not permitted to deal with vacancies within their portfolio and properly mitigate the significant losses that the pandemic has already delivered them," he said.
"The government is already expecting them to provide rental relief to their tenants proportionate to loss of revenue and is now telling them they can't have prospective tenants inspect a vacancy in a situation where a deal could be struck."
Victorian Premier Daniel Andrews. Source: Daniel Andrews Facebook
Mr Walton said Victoria's second wave and subsequent lockdown meant the state's commercial sector had only been able to trade freely during the month of June since the pandemic period began.
"From March 27 to June was a less severe lockdown of what we have at the moment and we went back into lockdown on July 9, which was then taken further in August," he said.
"It's a long time to be out of the market and if we do re-enter on October 19, it's not as if we are having discussions with tenants to do a deal on October 20.
"From the lifting of restrictions, given the timing of the year, we're likely to be negotiating transactions that probably won't take effect until 2021.
"Many small businesses and commercial property owners need an opportunity to deal with their property interests during this very difficult period."
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