Commercial property leases lengthening

Monday, December 29, 2008

The average length of commercial property leases in the UK has grown for the first time in ten years.

New figures have shown that the average length of a commercial property or corporate real estate lease has increased for the first time in the last ten years.

Office industry news source Choregus has reported that information compiled by IPD and the British Property Federation have shown that the average firm now holds a tenancy of 6.2 years at its offices across the UK.

However, the research claimed 63 per cent of firms still hold leases of less than five years but due to the effect of many large businesses taking out extremely lengthy lease renewals - usually anywhere up to 99 years - this figure has grown sharply over the last 15 months.

Meanwhile, regeneration specialist Priority Sites recently announced that the second phase of its corporate development at Shortwood Business Park in Barnsley is due to get underway in the new year.

The developer noted that up to 126 jobs will be created at the site and that the scheme has attracted a lot of interest in recent months.

Source: ask-re The Property People LLP