“Keep commercial units small and flexible to encourage more tenants to sign on the bottom line”. This is the message from Boxpod’s MD Nick Marlow.
“There’s a big demand for small units, anything from 500-1,000 sq ft. Another thing we are seeing more and more of is a demand for office sharing or renting space for the day. Landlords can’t just sit back – it’s about being flexible and adaptable now.
“We’ve been helping landlords meet market demands. Where large industrial units have been standing empty, we’ve found a way to get them occupied and rent coming in. You divide them up into, say, three smaller units and before you know it, we are seeing two thirds of the building let. This way, the tenants are not taking on massive overheads, landlords are seeing monies coming in and everyone is happy.
“The yields for rents per sq ft for smaller units can be much higher. The facts speak for themselves. Larger units in some areas generate £1 per sq ft whereas smaller units in comparable areas can generate £5-£10 per sq ft.
“And similar trends are showing throughout the commercial property market. Landlords are having to think outside the box to capture the business owners, cottage industry workers and entrepreneurs who are increasingly choosing to sit and connect with customers from high street coffee houses.
“Companies, for example Regus, have come up with the idea of Thinkpods within their property portfolio – described as “private space in a public place with room for a laptop and a comfortable, adjustable chair”. This enables people to interact with other people despite being sole traders. Ultimately, it’s intended to boost productivity for the user.
“Short term lets are also proving more appealing to prospective tenants – again this helps to ease the overheads burden. “
“It’s about being proactive, flexible and negotiating the best deals for landlords and tenants”