Resilient businesses  Keep inspiring 

South-eastern businesses are showing inspiring resilience in the pandemic-induced slowdown, with smaller enterprises in particular adapting, and being willing to make quick decisions.

We saw this at the market coalface: Nichols Crowder transacted 142 commercial and industrial sales and leases in the April-June 2020 quarter, up 3.6% from 137 transactions for the same quarter last year.

While the overall value of these transactions is well down, we are impressed and heartened by the fact that, amid a pandemic and associated economic hit, 142 businesses were confident enough to sign a new lease or contract.

“We continue to be inspired by the quick responses and adaptability of small businesses, to face the slowdown head-on,” says Matt Nichols, Director. “We’re seeing food and beverage suppliers changing their customer bases, retailers investing more heavily in e-commerce, and home-delivery services dramatically improving their offerings to make it easier for their customers to purchase.”

The greatest demand for properties in the quarter was for industrial buildings under 250sqm, with sales and leases for these both up from a year ago.

Small businesses have been most active in this property type, adapting to meet the changing market.  We are also seeing an increase in suburban office leasing demand, particularly from corporates looking to move from the CBD to work closer to home.

“In July, notwithstanding the pandemic second wave, we saw businesses actively pursuing opportunities,” says Nichols. “Throughout the COVID downturn we have seen amazing examples of innovation, with companies adjusting their business models to compensate for lower revenue.”

However, since the second Stage 3 lockdown began in mid-July, activity has slowed: we believe businesses are reviewing their strategies, assessing what may happen with JobKeeper and the State’s progress in terms of cases, before they act.  Now with Stage 4 Stay at Home restrictions in place, businesses will now pause.

Nichols Crowder is also receiving more calls from landlords, whether self-managing or managed by other agents, seeking help working with tenants or upcoming vacancy to navigate the uncertain times.

Whilst now based remotely our team is available to assist, so as always please don’t hesitate to contact us.

We are thinking of you all hope you keep safe and well.