Will tenants ever sign long term leases again or will hot desking become the norm?
April 6, 2021 | What we do
The end of the 10-year lease is over. Flexible commercial leasing is key.
Lease length had slowly been coming down over the years from the traditional institutional 25 years to 15 years then 10 years and reluctantly, from the property investor’s viewpoint, then down to 10 with 5 year breaks and latterly in the last few years 5 years often with breaks at 3 years or less with some retail property.
However, the industrial market has bucked the trend and is a very solid and secure sector.
With online shopping here to stay, demand for last mile delivery hubs is very strong and the logistics market as a whole is desperately seeking new, big distribution warehouses and will commit to 10-15 years.
The office market is in a state of flux while it tries to establish whether or not people are coming back to work or not so it will remain cautious about long term commitment to leases.
We usually have several requests for offices and have facilitated filming in both empty and tenanted buildings so can generate income to help offset rental liabilities. Most filming is just over a few days, but some can return time after time and the central London daily fee rate is high.