What’s Happening to Commercial Leases in the Tighter Property Market?
By Peter Scott | Property Leasing | Thursday 27th March 2008As money to finance commercial property purchases starts to tighten, a number of businesses considering buying property are likely to opt for leased commercial premises as an alternative.
We are not in the business of advising clients whether buying commercial property or leasing is a better option. However, it is useful to look at some likely scenarios that occur when the property market gets tough. We all know it is a complete schamozzle at the moment with speculation going in every direction. However, Parallel Directions predicts there will continue to be opportunities for good deals leasing property.
Business leaders will need to be extremely careful who they lease from. Every property owner is at a different stage of their risk cycle and considered advice will be crucial. Undoubtedly, behind the scenes, with banks security rules being tightened and interest rates on the up, there will be some property developments that will struggle and lease discounting may well become a feature of the market.