The recession has torn up the traditional rules regarding landlord and tenant bargaining positions with, in most cases, the balance shifting to the tenant. As Shayne Foley explains, there are various tactics tenants can employ at the very outset of lease negotiations to ensure a good deal.
The average length of a small business lease has been reduced by more than 12 months in the last two years, as business owners looked to retain their flexibility, according to research from the British Property Federation (BPF).
A BPF study of 91,000 tenancies found the average lease length for a small firm dropped to 4.1 years in 2009-10, compared to 5.4 years in 2007-8. Cutting the length of business leases has been a trend since the early 1990s, when a typical lease length was between 20 and 25 years.