There has been a huge amount achieved in enabling companies to place themselves effectively in hibernation. Lobbying is now taking place to secure the support to enable companies to be revived effectively. This lobbying is particularly apparent in the leisure and hospitality sector, with the likes of Kate Nicholls of UK Hospitality managing to raise sector concerns to the top of the government agenda. 

Leading industry exec Jonathan Downey has also been vocal in the measures needed and has now stepped forward with a proposal for the accommodation required for the industry to be rehabilitated - his National Time Out proposal.  

What is important about Jonathan's proposal is that it looks through to the landlords and the financing structures they need to service. Much of the dialogue seems to pit tenants against landlords and the truth is that they both need to work together along with their other stakeholders in order to create an environment to support recovery. The uncomfortable truth is that the only way to recover the capital value of both tenant and landlord is for the tenant to get back to a sustainable level of profitability to comfortably service a consistent rental stream. Until this is achieved, rental yields will not sharpen again which is vital for real estate values to recover. 

We are facing a scenario where landlords effectively have tenants opening sites into uncertain markets across their whole estate. With new site openings, rent-free periods are common to allow new businesses to get established. The good news is that whilst markets are uncertain the tenants are experienced and already known to landlords so varying terms to support their recovery can make sense - certainly in comparison to finding a new tenant where inducements would likely be required.

The recovery, particularly in the leisure and hospitality sector which relies on people gathering together, may well be saw-toothed with volatile period of demand and even further future enforced closures. 

Given this, what may be required is a shift in the landlord and tenant relationship to move more to a turnover linked rent with greater transparency for the recovery period until a new level of supportable rent can be set. This would allow the flexibility to absorb further shocks until we manage to beat this virus. 

What is undoubtedly true is that tenants, landlords, lenders, investors, employees, suppliers etc are all in this together. Accommodation and flexibility will be needed by all parties to enable a sustainable recovery to be achieved. In the end this is what is needed to recover capital values which goes to support the lending that banks have provided to the landlord community.