In 2020, California’s commercial property owners faced a range of unexpected changes and fluctuations. Many commercial buildings across the state and nation wound up closing abruptly. These sudden closures have raised numerous questions about how property owners should handle their spaces when it comes to liability, insurance and related issues and concerns.
According to GlobeSt.com, as a commercial property owner, you have an obligation to stay on top of local, state and federal guidelines when it comes to mitigating possible future losses and maintaining the integrity of your commercial property. You may also want to take these additional steps to help protect the value of your assets during uncertain times.
Develop a property management plan
You may want to work with an environmental engineer to come up with a list of tasks and duties to take care of while your property remains vacant. These tasks might include performing periodic inspections to check for leaks or HVAC or indoor air quality issues, among other possible areas of concern.
Review your insurance policy
When your commercial building reopens for business, it may have insurance implications. You may want to see if your insurance policy contains any language about economic losses due to environmental factors and circumstances.
Determine whether litigation is necessary
If your commercial tenant has to vacate your space for a period, he or she should leave it in appropriate condition. If your tenant leaves your space in poor condition or leaves hazardous materials behind, you may need to file a claim against him or her within a specific timeframe.
Sudden business and building closures have created considerable uncertainty among commercial landlords. The more you understand about your responsibilities in these circumstances, the better the chance of you experiencing minimal, if any, losses.