New EICR to cover any changes made by outgoing tenant?10:00 AM, 4th May 2021
About 2 weeks ago 94
Commercial property tenants are finding relationships with landlords are better but they still have room for improvement.
Tenants marked their landlords an average of 4.9 out of 10, according to a satisfaction survey by the Royal Institute of Chartered Surveyors (RICS).
Many more occupiers were happy with rent reviews, probably reflecting the positive impact of the code for leasing business premises with about a quarter of tenants expressing the process was better than 12 months ago.
Sustainability and environmental issues were where most landlords were marked down to an average score of 3.5 out of 10 as 48% of occupiers polled stated these issues were of increasing importance to them.
Tenants are still concerned about costs – especially service charges where 19% feel service charge arrangements have worsened over the last 12 months.
Overall, relationships between landlords and occupiers remain stable, with 81% of respondents saying their relationship is about the same with their landlord as it was 12 months ago. Small businesses remain the least satisfied.
A RICS spokesman said: “The results show that many appear to be benefiting from increased flexibility over lease events. This may be a reflection of current market conditions, as landlords become increasingly responsive to the difficult trading conditions facing their tenants. “This is positive news for the industry but will it endure when the market strengthens? There is still much work to do in other areas to improve landlord and tenant relationships.
“Evidently sustainability is a key issue for occupiers. Despite a number of initiatives which landlords, occupiers and their advisers are all working on, it appears there still needs to be more clarity and a greater willingness to work in partnership.
“In these difficult economic times will occupiers be willing to pay for green buildings? Certainly, more creative engagement between the parties could help to ascertain exactly what it is that each wants when it comes to sustainable buildings.”
Full survey results: CLICK HERE.
For information regarding Commercial Finance CLICK HERE.
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