Commercial landlords report rising vacancies

Three-quarters of commercial landlords have seen vacancy levels rise over the past year, with 76% reporting an increase in empty properties.

For many, the gaps between occupiers have lasted months with 81% of landlords having at least a tenth of their portfolio vacant for more than three months during that period.

The survey of 350 UK commercial property owners was commissioned by SafeSite Facilities.

Of those surveyed, 42% said vacancies had increased significantly.

Empty property risks

The firm’s operations director, Paul Goossens, said: ” The market is complicated by the cost of living, international political events and a rise in flexible working, so there is no simple solution on the horizon.

“And it is not only the high street that is suffering.

“We are seeing an increase in empty commercial property across the board.”

He added: ” These figures are concerning for commercial landlords because empty properties are clearly bad for business and also come with additional risks and costs.

“The most recent RICS empty property monitor revealed a net balance of -19% in tenant demand and the headline occupier sentiment index for all commercial property sectors came in at -10%.”

Commercial property vacancies

A fifth of respondents had between 26% and 50% of their portfolio standing empty for more than three months during the past year.

Among warehouse and industrial landlords, 78% reported rising vacancies, compared with 75% of office landlords.

The proportion reporting an increase was 72% for retail and 68% for hospitality and leisure property.