Landlords work with commercial tenants to help them survive the pandemic | News

Phone calls from commercial property owners in Kern County during the coronavirus crisis ranged from mere painful to truly tragic.

Tenants asked for rent relief after they had been unable to sell for months due to government operating restrictions.

Retail landlords responded by tailoring assistance to different companies as needed and, in many cases, offering rental deferrals. These measures, coupled with the following government recovery programs, have allowed many local operators to survive and reopen.

To achieve this has required a balance between holding the line for investors or lenders and working closely with business owners who do not always understand the resources at their disposal.

Bolthouse Properties believed its tenants were partners, said Bruce Davis, senior vice president of development.

“Everyone had different needs and we and I are sure all the other developers went out of our way to keep them updated,” he said.

There is high optimism among local commercial property owners that Kern County small business activity will recover from the COVID-19 crisis and not only fill in existing space but also fuel demand for new projects.

Even in the office market, where home relocation has raised concerns that employers would reduce footprint, businesses are expected to continue to need meeting and office space.

“I think people want to be as productive as possible and that means in person most of the time,” said Don Bynum, director of asset management at Bynum Inc. Pandemic. “

He told of an adjustment the company made during the crisis that helped fill a prominent position on Truxtun Avenue.

The office space on the second floor had been occupied by a single tenant for at least 25 years. However, the company wondered if it could help meet the growing demand from professionals looking for something small for themselves.

Bynum said several asked about spaces as small as 500 square feet, which can be difficult to find. But they agreed to rent an executive office instead, and now have four people, a paralegal and an insurance professional sharing the floor at a cost of about $ 1,000 a month each.

In general, Bynum’s office tenants have kept pace with rents, although some have been harder hit than others. He noticed that there was little new leasing activity among large tenants.

Retail real estate performed very differently, he said. Some were unable to pay for long periods of time, while others appeared to be having trouble applying for government recovery assistance. Bynum said the company ended up directing some tenants to adequate help filling out application forms.

There were some who insisted on lease forgiveness, but the company couldn’t offer that, he said. The only significant government help to property owners came indirectly through small businesses.

Bolthouse’s Davis said retail activity is picking up as potential tenants inquire about availability at two malls the company is building in southwest Bakersfield.

Shopping hasn’t returned to its previous highs, but people have clearly been out in greater numbers lately as the economy re-opens, he said.

“I think everyone has the feeling, at least in our niche, that we’re getting out of here and people are coming back and getting vaccinated,” he told Weg.