Commercial landlords face 'additional pressures'

19 September 2011

Written by Jenny Barrett

Commercial mortgage holders may wish to alter the type of relationship they will have with tenants due to the recession.

Knight Frank commercial research team partner Darren Yates recommended being flexible, responding to their concerns or possibly choosing to ask for rents every month rather than quarterly.

The recent Occupier Satisfaction Survey 2011 found overall levels of happiness with this relationship have reached 5.4 out of ten, which is an improvement compared with last year.

Mr Yates explained that the "tough economic environment" has enhanced the adversarial nature of dealings between tenants and landlords.

However, "the downturn has put occupiers in the driving seat in the last month in terms of negotiations", he stated, adding that this may have improved the experiences of tenants.

In the "absolute top shopping centres" or in office space in central London, there is "an excess of demand over supply" and it is therefore easier to control negotiations for landlords, the expert declared.

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