Taylor Vinters - Solicitors

A number of office occupiers are looking to renegotiate their leases with landlords to reduce costs, according to the real estate firm Savills..

Research by the company suggests that 52 per cent believe they can control property costs, with many looking to renegotiate their lease rather than relocating to cheaper premises.

Savills believes that office take-up was significantly down in the first six months of 2009 when compared to the same period last year, which could be encouraging landlords to negotiate more with their properties'' occupiers.
A number of office occupiers are looking to renegotiate their leases with landlords to reduce costs, according to the real estate firm Savills.

Research by the company suggests that 52 per cent believe they can control property costs, with many looking to renegotiate their lease rather than relocating to cheaper premises.

Savills believes that office take-up was significantly down in the first six months of 2009 when compared to the same period last year, which could be encouraging landlords to negotiate more with their properties'' occupiers.

Jeremy Bates, head of national offices at Savills, said: "With less take-up, falling rents and yields that have moved out, most notably for secondary sub ten-year income, landlords are keen to participate in discussions that may result in longer and lower, rather than over-rented income streams."

The company''s survey, entitled What Occupiers Want, also reveals that a number of office occupiers would welcome the introduction of more sustainable measures in their properties. It polled more than 4,000 office-based firms in the UK when putting the study together.

Taylor Vinters head of property, Michalea Henson said, "We have increasingly seen that East Anglian landlords are responding sensibly and working with their tenants to ensure they can keep properties let in a challenging climate.  There are unseen factors such as the overheads of insurance and full business rates on empty premises which mean that tenants have a strong hand where the landlord genuinely fears that property may become vacant if they do not adjust the terms of the lease to fit the market conditions.  That said,  if the landlord has a unique and desirable property he can demand a stronger set of lease terms and much depends on the quality of the property."