Landlords should respond to tenants' needs for more flexibility.

Byline: Colin Forshaw

THE economic downturn has had a huge impact on commercial property across the region, forcing landlords to rethink their letting strategies.

Consequently, businesses are now looking for increased flexibility in their leases, in order to cope with economic conditions and help make them recession-proof.

We have seen a huge increase in enquiries from businesses who are interested in short-term leases, rather than being tied into long contracts. Whether it is a start-up or a small business, flexibility is needed and landlords are obliged to respond.

Of course, all landlords would like their tenants to be tied into long leases for secured revenue, but the reality is they need to react to market conditions, which now demand an understanding and accommodating attitude.

Short-term leases do not mean that the customer will be a short-term tenant.

Give them peace of mind with the letting and the beginnings of a fruitful and long-term arrangement for both office provider and their customer are likely to be in place. Businesses also need flexibility in terms of suite size. Start-ups' initial requirements may be small, but this could change quickly as their business grows and landlords need to be prepared to accommodate these changing needs.

Flexibility is also required in office suite sizing, all within the terms of one lease. Generally, start-up businesses are cautious in their initial outlook and square footage required. Where the initial requirement may be small, their requirements could change quickly as the business grows.

Similarly, landlords need to understand customers that need to downsize. This trend has increased significantly in the last year, and we will always strive to find appropriate space for our tenants within a Bruntwood building. In 2008, we helped more than 50 customers move within the Bruntwood portfolio. Without flexibility, these tenants could have gone elsewhere.

We are in the business of accommodating companies in every sense - both giving them office space and meeting their needs. In a tough market, landlords who show flexibility will reap the rewards and, in the longer term, it could help the commercial property sector prosper through any economic ups and downs.