Quality Is Best
February 2011
Quality still counts when it comes to attracting commercial tenants.
That’s the message from
“You might expect,” says the firm’s Nick Muncey, “That these days companies would be looking for a bargain when it comes to premises. However, whilst businesses are obviously keen to negotiate a better deal for themselves, a recently refurbished space or new build is still a better sales tool than offering a slightly scruffy office block at a knock down price.
“This is particularly true for firms whose premises are open to clients and customers. Despite tricky trading conditions, businesses are still prepared to pay for smart office space in a desirable location.
“This situation puts some developers with empty properties in a dilemma. Should they invest heavily in a refurbishment and hope this encourages more interest from potential tenants? Or sit tight and hope that the existing quality is good enough?
“Obviously there are no guarantees but all the evidence would suggest that if developers have got the money available, refurbishment is the way to go.
“And there’s another reason for upgrading. After a few years during which no commercial space was built at all, there are currently serious discussions taking place about erecting some new office blocks in the city.
“If that does happen, then those with premises to let that are a little frayed around the edges will fall even further down the pecking order.”