The current commercial property market conditions indicate that this is a “tenant market”. But what does that mean? This is a market that favours the tenant in that rental rates are declining. This enables tenants to command cheaper rentals through negotiation. We’d advise you to familiarise yourself with rental and purchase options available in the market, and to assess the associated benefits of both.
For example, we’re seeing that concluding a longer term lease can lead to lower initial rental rates and control annual escalation levels. In our experience, current bank funding criteria make the bulk of purchase opportunities unattractive to potential ‘owner-occupiers’, which in turn translates back to leasing being a more attractive option.
For any queries regarding commercial property transactions contact Simon (083) 261 2861.