“We have had requests for leniency from our smaller tenants who are running creches or operating food courts, who account for less than 1 per cent of our revenue. About 75 per cent of our clients are international tenants who have high compliance standards. They will not accept products that are below par in order to save a few rupees on rentals,” said Michael Holland, chief executive officer, Embassy REIT.
While the Covid-19 pandemic has resulted in an uncertain near-term outlook for many businesses worldwide, Holland said Embassy REIT
is uniquely positioned to weather the pandemic. “While demand is likely to moderate considerably through 2020, we believe that in this environment, Grade-A supply will reduce considerably over the medium term, consolidation in the office market will continue and high-quality institutional landlords, such as Embassy REIT, will gain market share,” explained Holland.