Core Commercial Real Estate
Point of View
2020 brought on a fundamental change in the way we work. Working from home was a perk that seemingly everyone wanted, but as the pandemic wears on the novelty is starting to wear off for many employees, and work-from-home fatigue is setting in. Many employees struggle with a less than ideal home office setup, video conference overload, family distractions and feeling less connected to the workplace.
This week, at the World Economic Forum, Barclays Plc Chief Executive Officer Jes Staley said working from home doesn’t appear sustainable, and JP Morgan Chase & Co.’s asset- and wealth-management boss, Mary Erdoes, agreed “if you ask anyone today, it feels like it is fraying, it’s hard, it takes a lot of inner strength and sustainability every single day to continue to focus and to not have the energy you get from being around other people.” Financial Post January 26, 2021 https://financialpost.com/executive/careers/top-bankers-sound-alarm-that-remote-work-is-starting-to-grate/wcm/e56f232f-e13a-43bf-b4a9-7e9bd3a092d2/amp/
Both executives parrot the concerns we regularly hear from clients that it is a challenge to maintain corporate culture, collaboration and knowledge transfer from a virtual office.
Even though it appears we will be working from home for the foreseeable future, most companies are looking forward to at least a hybrid situation where employees are in the workplace but with some flexibility to work from home.
The deadline to apply has been extended to June 30, 2021
Please read the attestation carefully before you submit your application as you can not have applied for the Regional Relief and Recovery Fund too. To read more about CEBA, go to https://ceba-cuec.ca/
There may be unintentional negative consequences for applying for the additional $20,000. Suggested reading before applying:
From the tax website TaxTips.ca – CEBA – Canada Emergency Business Account
It important that you know what the $40,000 + the additional $20,000 loan actually means to you before applying:
“Important: If you’re considering applying for the additional $20,000 CEBA loan, be aware that it can change the requirements for the original $40,000 loan. If your attestation for the $40,000 said you could use the funds for “without limitation, payroll” etc., that will be changed to use for only Eligible Non-Deferrable Expenses, which includes only non-arm’s length payroll (i.e., not owners’ wages). See the Crowe Soberman article CEBA Expansion – Think Twice Before Applying for the Additional $20,000.”
NOW accepting applications – closes May 31st
- Alberta organizations that were ordered to close or curtail operations from April 6, 2021 and later AND have experienced a revenue reduction of at least 30%, as a result of the COVID-19 pandemic can apply;
- The grant is used to support businesses affected by the public health measures introduced in April 2021;
- The Spring 2021 payment is calculated as 15% of the eligible organization’s revenue from the chosen month to a maximum of $10,000;
- See webpage for information and how to apply https://www.alberta.ca/sme-relaunch-grant.aspx
The truth is every lease is different. Your lease may have specific provisions for circumstantial deferred rent or rent abatement during times of material business interruption or revenue loss (many companies also have business interruption insurance for this reason, but to date this Covid-19 pandemic is not definitively being covered). If you do have these provisions in your lease, we can help you speak to your landlord about exercising these rights.
If you do not, now is the time to talk to your landlord. Our job as a tenant-only representative is to be part of the process with you and we are happy to work with your Landlord on your behalf.