While lack of demand for retail premises is bad news for investors and the economy as a whole, businesses looking for new premises are in an ideal bargaining position, according to commercial property managers.
Availability of retail premises appears to be increasing according to the latest figures which means landlords are prepared to offer greater flexibility to retail tenants and competitive rental prices to entice them into a deal.
Appointing a property management company to source business premises and negotiate a lease on your behalf can be a shrewd move in such a climate and will help you achieve the best deal for your business. Whether you’re looking for one-off support or for a permanent service to oversee multiple site acquisitions, property management companies can help you save money and ensure your business is protected from unnecessary liabilities including refurbishment.
Peter Knight, managing director of Manchester-based property and construction consultancy Knight Morris Ltd, said: “Landlords are more inclined than ever to offer incentive packages to snap up tenants because of the competition out there and businesses are wise to use these gloomy economic times to their advantage. However, businesses should still be on their guard when agreeing to the terms of a lease to avoid costly exits and hidden expenses.
“Whether you’re looking for start-up retail premises or for a new base to add to your growing property portfolio using the services of a retail premises expert who will safeguard your position and ensure you receive a good return for your investment. With an extensive network of contacts, a good property manager will not only source a good selection of options but will also be able to negotiate a better deal on your behalf and make the process much simpler.”
Recent figures from the Royal Institute of Chartered Surveyors UK Commercial Market Survey show 15% more surveyors reported available space rising in the third quarter of 2011.
Overall tenant demand retreated during this period and fell into negative territory for the first time this year. Surveyors blame the situation on the uncertain outlook for the wider economy which has impacted negatively on demand.
The RICS said the sector saw the largest drop in demand for space while inducements rose over the three-month period as landlords looked to entice tenants into new deals.
Property Aspects Magazine appreciates the contribution to this article from Property sourcing and management specialists Knight Morris in Manchester