London Commercial Rentals Improving
Surveyors have some good news to share with owners of commercial property in and around
From March to September of this year, the total available vacant office space went down by about 1.5 million square feet. The final figures assessed at the end of September showed that about 8.5 million square feet of office space are yet to be taken by tenants. The increasing demand for commercial space reflects the growing optimism in the country about an expected economic upturn. The increased tenancy comes after a long two year gap. It is to be noted that lack of funding and tight finances have severely curtailed any further investment in new property developments too. The net effect of this is that the total amount of office space has remained more or less the same over this period.
The downturn hit this sector so badly that landlords were coming up with innovative schemes to pull customers back in. Some offered customised furnishing or remodelling of premises on the house. Others came up with a bonus scheme for long-term contract by offering rent free months – click desk rent
Real estate sector gurus claim that it is only now that landlords have begun to tighten the terms of tenancy owing to the need for showing profitability in the financials. The low demand had translated into very less cash flow for them affecting the performance of their business. But landlords are now beginning to focus on their profitability in the current 12 month period.
