A survey carried out by the CBI and, property advisers, GVA Grimley shows an increasing flexibility by property owners when making lease terms.
The results of the survey are presented in this report published in January 2006, 'Commercial Property – Meeting the Needs of Business
Results indicate landlords to be more willing to negotiate lease terms suitable with business needs. Only 11% said proprietors were not flexible with lease terms, yet five years ago 32% believed landlords to be inflexible.
Stuart Morley, National Head of Research at GVA Grimley, said, “This is positive news for the property industry, as it indicates that landlords are becoming increasingly flexible in the terms that they offer to tenants, and that two thirds of respondents are now being offered such flexibility. Lease terms should be agreed as the result of negotiation, and should therefore balance the needs of the landlord and tenant.”
Occupiers also rated a range of impacts on their decision about which premises to choose. The major factors are as follows in order of importance:
- The ability of a building to support core business operations.
- Cost factors.
- Workplace efficiency and effectiveness.
- Impact on presentation of brand/reputation.
Tony Joyce, Office Partner from GVA Grimley City Office said:
“Landlords are increasingly becoming more sophisticated in their relationships with tenants. Unlike five or even ten years ago, Landlords are making a long term play for tenants. They understand the importance of partnership with their occupiers and regularly proactively canvass their tenants' views in order to provide an ever improving level of service and relationship.”
The survey revealed location as a key factor to the decision-making process in choosing office or industrial property. Access to workforce is of particular importance.
See: Things to consider when choosing your place of business