Landlords with vacant large floorplates must be getting slightly nervous.
The number of office tenants in the UK that are now ‘holding over’ * has almost doubled in the last two years rising to 23.5% from just 13.8% in March 2020. This is based on the findings of Re-Leased, the cloud-based commercial property management platform. The findings were published recently by Co-Star.
The analysis undertaken by Re-Leased involved data from over 10,000 commercial properties and 35,000 leases.
This means that the vacancy risk for landlords has increased significantly and could result in the office market becoming far more volatile as occupiers come to terms with hybrid working and its impact on their space requirements.
If you are an office landlord, a lender or a developer, fasten your seat belt and get ready for a potentially bumpy ride!
If you would like advice on the renewal of your office lease or what your alternative options might be, please call Martyn Markland on 0161 457 1422 or email him at mm@tenantag.co.uk
Note (*)
Situations where landlords have not forced tenants to formally renew their lease and where as a result, tenants can vacate their office space with minimal notice (usually 3 months).