A Current Tenant is a Good Tenant

A recent report by commercial property agents King Sturge (KS) may concentrate the minds of commercial landlords who may be faced with a substantial reduction in income if they have to find new tenants in the event that existing ones terminate their leases.

KS have reported that commercial rents have fallen (by 0.4 per cent) in the last year and predict that in 2009 rents will fall by a further 5.6 per cent, in 2010 by 4.7 per cent and 2011 by 2.1 per cent. More worryingly, KS also predict that there will be no upward movement in rents until 2013 and that landlords will have to resort to a variety of 'sweeteners' to obtain replacement tenants or to retain those they have.

In the present market, a landlord may feel that a bird in the hand (even one that is less than ideal) is worth two or more in the bush and it is to be expected that negotiations over rentals and lease terms will become more difficult, particularly where the property being let is retail premises.

We can assist you in negotiating new leases and lease reviews.

Partner Note
Reported in Retail Week, 12 January 2009. See http://www.retail-week.com/Property/.

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