Commercial property ‘is in a state of flux’

Posted 21/09/2010

A commercial property expert has said he feels the sector is in something of a transition period as both tenants and landlords get used to conditions following the recession.

Timothy Lambert, head of consulting at private wealth management firm Ducalian, said satisfaction levels can be low because landlords may have reduced rents, but tenants may also be less happy with the lower service levels they receive as a result.

“Commercial property is still in a state of flux. Investors want a return to reasonable yields, yet tenants still wish to make the most of a downtrodden economy and take advantage of lower rates and higher service levels,” he pointed out.

However, Mr Lambert advised commercial property owners against passing negativity on to clients, as it is important to maintain a portfolio during tough economic times.

This comes after the Occupier Satisfaction Survey released last week showed that overall occupier satisfaction for commercial property was rated at 4.9 out of ten, proving there is room for improvement.