Top Tips for Making Your Property More Lettable in a Challenging Economy

The consensus for economic forecasts seems to be that the UK will experience a shallow recession for most of 2023 (or at least it will feel like it). This is likely to continue to put downward pressure on rental values in some asset classes.

Whilst there may be some limitations with the analogy, the market for vacant property can be likened to the tidal effect of the sea and boats moored upon it. At high tide most float with relative ease. But when the tide retreats those boats with shallower moorings may become stranded.

So it is with vacant property. In challenging conditions, those in less favoured locations or those that have not been sufficiently equipped or adapted to the conditions will probably languish until they improve.

Making Commercial Property More Attractive

In a competitive market, where supply outweighs demands, it’s important for landlords to remove as many potential barriers as possible that stand in the way of a successful letting. Prospective tenants can be ruthless when shortlisting opportunities through selection and deselection.

For most businesses time – and saving it – is critical. A property that is appropriately priced and physically well-presented is likely to be let more easily than one that requires work – even where incentives make the overall cost to the tenant lower. This is partly why, at the smaller end of the office market, many landlords are now providing fully fitted ‘Plug and Play’ space ready for immediate occupation.

Landlords should be aware that where demand is relatively weak, affordability takes on greater importance. Every effort should therefore be made to ensure that the total cost package including service charges and rates in particular are kept as low as possible, and that heating and ventilation systems are effective and efficient. By lowering these ancillary (but unavoidable) property costs, landlords will be able to optimise the rent receivable.??

The increasing burden on landlords to comply with the Government’s carbon reduction targets through MEES etc, will require them to improve the energy efficiency of their properties through the installation of efficient heating and lighting systems etc and improve insulation. Landlords should recognise that now is a good time to invest in their assets.??

Market Knowledge

For investors in commercial property, it always helps to understand the dynamics of the market, both nationally and locally for your investment. Where demand for space is?subdued in many market sectors this matters even more. Commercial property specialists like Hicks Baker who are immersed in the Thames Valley market can help advise on ways to make your property more lettable and minimise the risk of an extended void period.

If you need help with securing good quality occupiers for your commercial property within the Thames Valley, contact Hicks Baker. Call?0118 959 6144?or email?[email protected]