Industrial has been one of the winners amid the pandemic disruption. Amazon stock, for example, has surged to a record price, an event that is some indicator of how industrial real estate could be impacted. For CapRock Partners, an industrial developer and owner, lease deals that began negotiations before the onset of the pandemic have made their way to completion, a total of some 600,000 square feet of leasing activity across its portfolio.
“Across our portfolio since March 1, we have either leases signed or out for signature of approximately 600,000 square feet,” Jon Pharris, co-founder and president of CapRock Partners, tells GlobeSt.com. “Those all have corporate board approvals and some are fully executed. So, we are seeing deals get done; however, those were deals that had been negotiated before the pandemic started.”
While lease deals haven’t canceled during this event, CapRock still anticipated rent relief and rent referral requests across their portfolio. “Most of our tenants are larger scale, because we are very focused on credit,” says Pharris. “That being said, we are expecting to receive rent abatement requests or rent deferral requests. Every landlord will experience that across their portfolio. We are going to take proactive steps with our tenants so that they can understand how the change in the economy has impacted their business, and just as important, to make sure that they understand the CARES program and how the federal relief can benefit them. We want to be a partner with them in that process.”
This article was originally published at GlobeSt.com and features Jon Pharris (Co-Founder and President of CapRock Partners). Read the entire article >>