Landlords call time on long leases

Short term lets and flexibility are key when it comes to meeting tenants’ demands now. Today’s businesses are looking for alternatives to the traditional 25 year lease as they don’t want the long term commitment to premises.

Enquiries for short term lets are becoming more and more frequent. Boxpod, the specialist website linking landlords and tenants with affordable commercial units, has found there are regular requests nowadays from tenants wanting space for as little as one month. Small businesses and entrepreneurs do not want the burden of long-term agreements – they want to be able to adapt with their own customer demands easily. The pop-up shop is here to stay.

Boxpod managing director Nick Marlow says: “The enquiries landlords are getting for temporary, pop up units is increasing year on year. People are asking for warehouse or workshop space for as a little as four weeks. I recently had a business looking for space for a short amount of time to lay out a display stand ready for an upcoming trade show.

“I was a retailer in the 1980s and I remember how difficult it was then to find a property to rent with anything less than a 25 year lease term on in. Now in the 21st century it’s not uncommon for lease terms of 25 weeks to be agreed on.”
Nick believes this shift towards short term lease agreements is reflecting the changing work ethics. He explains: “Just as people want more flexible working hours so it is the case in the arrangements and commitment towards their property needs.

“From a landlord’s point of view, there is more administration and paperwork but it is worthwhile. It’s better to have occupied properties bringing in revenue rather than units standing empty.

“Twenty five years ago it seemed you could hardly move without having to have a solicitor involved. Now, with a little legal advice, you can draw up a short term lease agreement fairly easily.”

As employment laws change, more flexible working rules and more entrepreneurs come to the fore, so the commercial property market has to adapt its ways to meet these new demands.

 

Boxpod is the specialist commercial property business listing units below £300 per week or freehold values of £250k throughout the UK. It efficiently links landlords with small, affordable commercial units and tenants.