Lease lengths shorten for first time since 2011
In a new article published by Commercial News Media, MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, has released its latest research on UK property leasing trends with the publication of the UK Lease Events Review 2017.
The market-leading research completed, which was sponsored by BNP Paribas Real Estate and the British Property Federation, reported that new property lease lengths average 7.1 years in 2017, a small decline of 0.1 year compared to 2016. This ended the steady upward trend in lease lengths seen since 2011.
This year’s reversal in the trend toward longer leases reflected a continued increase in the prevalence of medium leases (5-9 years), now coupled with a decline in the share of long leases (greater than 10 years) rather than the decline in short leases (0-4 years) seen in recent years.
Break clauses have continued to grow in use across new leases of all lengths, and are now included in just over 40% of leases. They are most common in industrial leases and least common for offices.
With the trends of long term leases on the decline, the processes involved with vacating from commercial or industrial premises is becoming more frequent. With this in mind, both the ways in which you enter into and exit a lease are coming ever more important. The use of a schedule of condition where you as the new Tennant are firmly involved is a key element to ensuring both the landlord and Tennant have a mutual understanding of the condition of the premises at the time of the lease commencement.
To discuss the various types of surveys available to tenants and landlords in the commercial and industrial sector, contact our surveying team on firstname.lastname@example.org
The full, original article can be found in the link below…