For many businesses, the shift to a hybrid remote work model happened literally overnight at the start of the first Coronavirus lockdown, while for others it has been a more gradual introduction over recent years. Regardless of how it was introduced, the hybrid work model is now the norm for many companies and seems set to stay.
A backlog of rent arrears and the new Commercial Rent (Coronavirus) Act are not the only effects of COVID-19 still impacting the commercial property sector. For commercial landlords, the rise of the hybrid office poses a significant threat to profitability. By definition, a hybrid workplace has fewer workers on-site, which reduces tenants' demand for office space.
As many parts of the economy return to approximate normality in the post-pandemic period, this is one trend that seems unlikely to fully reverse, leaving commercial property landlords facing potential tenancy disputes and a need to renegotiate lease contracts.