UK OCCUPIER SATISFACTION INDEX 2009 PROPERTY INDUSTRY ALLIANCE
AND CORENET GLOBAL UK
Home : Qualitative findings : Summary by question

How do you rate your level of satisfaction with the flexibility of leases within the UK, in terms of lease length and the ability to break?

Many occupiers believe that current market conditions are forcing property suppliers to adopt a more flexible approach to leasing, although some feel that property owners are not responding quickly enough, and some are perceived not to be responding at all

Many occupiers believe that the current economic climate has led to greater lease flexibility 'It's changing as we speak. Today I was offered a three year lease with a mid-term break. Last year I was struggling to get a 10 year lease with a mid-term break. It's definitely the economic climate.'

'The current state of the market has made landlords more flexible. We have seen more monthly rents and the increased availability of break clauses.'
Although some believe that flexibility was increasing prior to the economic downturn 'Landlords started to become more flexible before the current market situation, but this has been a catalyst to even greater flexibility.'

'Even prior to the current economic downturn we saw landlords becoming more flexible. There's been a gradual change over the years.'
Conversely, some think that property suppliers are getting tougher 'I was expecting landlords to become a little more flexible in the current economic situation but because they are under financial pressure they are becoming less flexible and getting tougher.'

'The current economic climate has had no effect on flexibility of leases. In fact, it has had the opposite effect with my landlord.'
Some do not perceive any change 'There has been no change in the past year, although it will be interesting to see what happens in the current crisis. I'm hoping that landlords will react differently. At the moment they are sitting still and sticking it out.'
Some believe that the property industry has its head in the sand 'Some landlords are better than others. Some are being driven by market forces to be more flexible, others are 'head in the sand dinosaurs'. A few are genuinely prepared to be flexible and see there is merit in partnership and relationships.'

'I don't think that mentally landlords are where they should be. Many of them are not modernising sufficiently.'
There is concern that an upturn in the economy will see a return to less favourable terms 'We have seen increased flexibility of leases because landlords are desperate, not because they have become more broad minded.'

'Landlords are being more flexible, though when availability becomes less, so will the flexibility they are showing.'
Some see serviced offices as an alternative to inflexible leases 'In the UK landlords are used to five year minimums and 10 year breaks and this is still not changing. This is forcing people to look at serviced offices rather than long leases.'

'We ended up in serviced office space as the landlord is more flexible. You can give one month's notice and you can expand if you want to.'
There is more flexibility outside of the UK 'Leases in the UK are generally not very flexible compared to those in Western and Eastern Europe.'