In 2020, the offices of London became deserted. By Q3, the volume of rental transactions in office real estate dropped by 71% from the same period last year and by 67% on average compared with the level of the previous 5 to 10 years.
Lockdowns and restrictions resulting from the global pandemic made paying office rent more complicated, as many London-based companies vacated their offices as early as February and still haven’t returned, all the while keeping the lease. In the meantime, conferences and meetings have gone online. Given the circumstances, few agreed to continue the lease on the same terms.
All of this prompted occupiers to negotiate changing the terms of their lease. One of the solutions landlords use to avoid losing clients occupiers is reallocating their lease portfolios and offering their tenants alternative offices in new locations. Similarly, our team has moved to a new office on the next street, cut down our rent, improved our space and the views. We got to keep our landlord whose services we appreciate, and our landlord got to keep a reliable and trustworthy client. We believe that this kind of win-win solutions that consider the interests of all parties ensure market stability even in such trying times.
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