Landlords Having to Redress the Balance

02/06/2008

Aitchison Raffety reports that a growing number of landlords of vacant commercial premises are achieving successful disposals after carrying out refurbishment works. Group Director, Mark Bunting comments: “in a somewhat quieter market we have been speaking with clients to see how we can reduce void periods and maximise rental levels. The most common and effective solution has been to carry out refurbishment works which can in many instances just comprise a thorough clean and decoration or a complete strip out and re-fit. Landlords are now further penalised if their buildings are left empty over a long term period as they will be paying full business rates.”

Mark adds: “previously where demand was outstripping supply landlords could afford to offer incoming tenants rent free to cover the cost of the works needed but now with supply exceeding demand it is imperative that premises are ready for occupation as tenants have greater choice and normally choose the easiest solution to their space requirements.

“We have been working closely with landlords and local builders to solve vacancy issues and we expect this trend to continue. It cannot be underestimated how much more attractive buildings are to potential tenants which are ready to move into straight away.”

We have one building in St Albans, 1 Woodland Court, which has just been refurbished and now comprises 1,300 ft² - 2,600 ft² of office space ready to move into. Similarly we are in the process of getting a pair of Victorian semi-detached 1,000 ft² office buildings in St Albans town centre refurbished. Although this is at a significant cost to the landlord the returns they can expect are greatly increased and with the void period reduced the long term benefit is clear to see.

In High Wycombe the comprehensive refurbishment of Tempus Court in Bellfield Road, has just been completed which provides up to 15,458 sq ft of quality office accommodation. A new lease of Beech House, High Street, Lane End recently completed with the tenant taking occupation without a rent free period, following refurbishment.