September 15, 2020
UK Commercial Property Leases Becoming Shorter
There is data to suggest that the length of commercial property leases in the UK is getting shorter. That’s according to figures from Re-Leased and reported by the Times, which revealed that the average length of a commercial lease in Britain has fallen by ten months since February this year.
The news provider revealed that this means the average length of a commercial lease stood at 27.4 months in June.
It’s quite a contrast from January 2019, when the average length of commercial rentals reached a high of 48 months.
Commercial analyst at Re-Leased Caleb Dunn told the publication that this shift by businesses towards shorter leases is putting some landlords at risk.
“A rolling lease with no fixed expiry can be common, but in the current climate it exposes the landlord to scenarios where the tenants can easily walk away from their premises,” he asserted.
Given the current situation with Covid-19 it is little surprise that some businesses are seeking shorter and more flexible leases from their landlords.
As Elite Business Magazine recently noted, the government in the UK has published a code of practice relating to commercial property relationships during the pandemic, which essentially recommends that landlords and businesses fairly share the fallout from the pandemic and lockdown.
However, this code of practice is voluntary and with commercial properties exempt from the ban on evictions that’s currently in place for residential landlords, there are concerns that small businesses in particular will be hit hardest by the challenging economic landscape at present.
If you’re looking for a commercial lease solicitor in Yorkshire to help you navigate a lease renegotiation or to set out the terms for a new tenant, contact us to access our specialist expertise today.