Warning – poor quality office stock is taking a year to let
9th December 2019
A Nottingham commercial property expert is urging landlords to invest in their property portfolio after new figures showed that huge swathes of poor-quality city centre office space is taking over a year to let.
Sunny Landa, director at NG Chartered Surveyors is urging landlords to get on the front foot when it comes to their vacant office space, saying that those who invest will reap the rewards.
Research from property analysts Costar shows some 50% of Nottingham city centre office stock at the bottom of the market with rents of sub £10.00 per sq ft is taking over 12 months to find new occupiers, leaving landlords seriously out of pocket.
Landlords who have invested in their office portfolio to either create refurbished Grade B, or fully reposition Grade A are now achieving headline rents of circa £16.50 to £20.00 per sq ft. The average rent-free period on this grade of offices is 6 months – but with a much higher rental return than the poorer stock. Marketing periods for refurbished space are significantly lower at closer to 3 – 6 months.
“As these figures show, those landlords who repurpose their buildings go onto to win. By investing in their office stock, they get better rents and benefit from shorter void rates.”
“landlords need to keep pace with the changes in the workplace environment. Employees now demand so much more from their places of work; they want an experience, not just a desk to sit at for eight hours a day.”
“proactive landlords are the ones investing in refurbishments and ‘smart office’ technology to entice a younger, more sophisticated tenant. In turn their workforce is now looking for a ‘home from home’ when they’re choosing which company to work for. That’s what makes a great office – and that’s what makes a successful landlord.”
“We have been working closely with our clients in a continual process to add value to their properties with some significant success.”