Coronavirus: Federal Council presents a monitoring report on the business rents situation
The Federal Council dealt with the business rents situation on various occasions. In doing so, he always took the position of not wanting to intervene in private law relationships between tenants and landlords. On April 8, the Federal Council commissioned the EAER, together with the FDF, to monitor the situation in the area of business rents and to report to the Federal Council by the end of October 2020 at the latest. The Federal Council already took note of this monitoring report on October 7, 2020 in order to enable Parliament to begin dealing with the Covid-19 Commercial Rent Act with knowledge of the monitoring. On September 18, the Federal Council passed the dispatch and the draft law on this proposal, which was commissioned by Parliament.
The report Monitoring commercial rents comes to the following results:
- Based on a structural analysis by Wüest Partner, there are around 390,000 business leases in Switzerland with a rental volume of an estimated two billion francs per month. Around CHF 900 million of this is for office space, CHF 500 million for trade and industry, CHF 400 million for retail space and CHF 200 million for hotel and restaurant use. In addition to the 390,000 leases, around 60 percent of the companies run their business in their own property. During the period of maximum restrictions between March 17 and April 26, 2020, around 113,000 tenancies were affected by the closings by the Federal Council. The cumulative rent of the commercial properties affected by closings amounts to 530 million francs per month. This corresponds to 27 percent of the rental volume.
- A representative survey by gfs.bern came to the conclusion that the proportion of tenants who have difficulties paying their rent in connection with the mandatory closings has risen from 6 to 33 percent in the weeks of the lockdown. This is particularly true of western Switzerland and Ticino. The survey also showed that the majority of tenants (around 60%) sought relief solutions – and the majority have found them. Agreements were reached far more often than disagreements; for the tenant side the ratio of agreements to non-agreements is 3 to 2, for the landlord 9 to 1. The vast majority of the agreements came before the parliamentary decisions of June 2020. In almost three out of four cases, the agreements involved rent reductions.
- The economic development so far points to a rapid and strong economic recovery. The number of company bankruptcies and the number of new requests in the statistics of the arbitration authorities are currently within the usual range or below the previous year's level.
- An international comparison shows that most European countries – like Switzerland – rely on support measures to secure the liquidity of the businesses affected by closings. There were seldom interventions in terms of tenancy law, and if so, it was an extension of payment or notice periods. There are no statutory rent reductions in the eleven European countries examined.
On the basis of these results, the Federal Council comes to the conclusion that there is currently little evidence of comprehensive and area-wide difficulties in the area of commercial rents. However, this does not rule out the possibility that there may be unsatisfactory constellations in individual cases. Depending on how the pandemic develops, the situation can quickly worsen.
For this reason, the Federal Council is currently refraining from taking any measures (e.g. in the legislative area). However, it instructs the Federal Housing Office to continue the commercial rents working group and to discuss any support in the area of advice and information with the cantons. Because experience has shown that regional solutions are best suited to the local situation.