Business space leasings grow longer
Wednesday, December 24, 2008
The average length of business space leasings is growing, new figures from the IPD and the British Property federation have shown.
The average length of business space leasings is growing, new figures from the IPD and the British Property federation have shown.
Research shows that it is the first time in ten years that this has happened, although Choregus points out that with some firms favouring substantially longer leases than is common, the overall average has been pushed up significantly.
According to the duo, the average business space leasing in the UK now stands at 6.2 years, although experts are predicting that this will come down in future results as the effects of the deepening economic crisis work their way into figures.
The industry website also forecast a rise in the popularity of services business space leasings as they may offer firms a greater degree of flexibility during this period of considerable commercial difficulty.
Earlier this month, IPD warned that the depressed property returns in the corporate real estate market are likely to fall low then benchmark figures corresponding to the crash in the early 1990s.
Source:
ask-re The Property People LLP
