Lease Advisory Market Update
Thursday 31 March 2022
Flude Property Consultants are delighted to share with you our most recent lease advisory update. Acting on behalf of both landlord and tenant clients, our dedicated professional services team have concluded a number of rent reviews, lease renewals and re-gears.
Generally speaking, there are good levels of occupational activity across the retail sector at present. Despite rents falling for Prime high street properties as a result of COVID-19, it has been demonstrable that in certain locations some occupiers are still prepared to commit to long term leases, without breaks. Rents have also remained particularly robust for ‘cheaper’, neighbourhood retail premises; and especially those eligible for Small Business Rates Relief (SBRR).
Across the South Coast, the genuine lack of industrial stock, coupled with increased activity amongst occupiers continues to see sustainable levels of rental growth in the locality. In Hampshire and Sussex, there is some proposed speculative development of industrial accommodation planned over the next couple of years, so time will tell as to whether rents gradually start to ‘flatten’ again, if supply catches up with demand…
In terms of offices, it was originally anticipated that the COVID-19 pandemic would be detrimental to the sector, following the shift to home/flexible working. However, in our local markets, we are seeing good levels of occupational activity, and sustainable levels of rental growth as a result. Despite all of the uncertainty that remains in the market, office occupiers are also still willing to commit to relatively long term leases, although more flexible ‘easy in’ terms are becoming insisted upon more frequently by occupiers.
Click on the link below to view our market update flyer.
