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Commercial leases in the UK regions: Business as Usual?

McCluskey, Danielle, Lim, Jasmine Lay-Cheng, McCord, Michael and Davis, Peadar (2016) Commercial leases in the UK regions: Business as Usual? Journal of Corporate Real Estate, 18 (4). pp. 227-253. [Journal article]

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URL: http://www.emeraldinsight.com/journal/jcre

DOI: 10.1108/JCRE-12-2015-0048

Abstract

AbstractPurpose: This paper analyses the changing nature of commercial leases with specificreference to the landlord and tenant relationship, lease lengths and incentivisation in the postrecessionary UK property market.Design/methodology/approach: The research applies data analysis utilising the EstatesGazette Interactive database coupled with survey analysis conducted across three UK cities toinvestigate and compare the changing nature of the commercial property leasing market andthe landlord and tenant relationship.Findings: The empirical analysis highlights that recessionary conditions prevalent in themarket from the 2007 global crisis has caused a reassessment of lease structures leading toshorter lease terms and increased use of incentives, as tenants have been empowered tonegotiate more flexible leases due to their stronger market position.Originality/value: This paper builds upon previous research conducted back in 2005investigating commercial leases in the market up-cycle. The recent volatility in thecommercial property sector requires fresh insights and in-depth analysis of lease patterns,length and covenant strength, which is fundamental for investor decision-making. In addition,past research has tended to consider solely landlord or occupier perspectives, this researchoffers new insight into the landlord tenant lease negotiation process.

Item Type:Journal article
Keywords:Commercial leases, Landlord, Tenant, Incentives, Lease Length
Faculties and Schools:Faculty of Art, Design and the Built Environment
Faculty of Art, Design and the Built Environment > School of the Built Environment
Research Institutes and Groups:Built Environment Research Institute > Centre for Research on Property and Planning (RPP)
Built Environment Research Institute
ID Code:34552
Deposited By: Dr Michael McCord
Deposited On:09 Jun 2016 13:09
Last Modified:16 May 2017 10:48

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