Credit crunch forces UK corporate tenants to consider moving out

Posted under General by Jermaine

A report by property services agency GVA Gimley and the Confederation of British Industry has presented a disturbing fact which illustrates how severely the gloomy economy and unparallel credit crunch had shattered even the mighty corporate world in the UK.

The report highlights that more than 50 per cent of corporate tenants, if given choice of alternate rented premises up to a quarter, would be first to move out, due to slowing economy and credit crunch. This also included 90 per cent of retailers who were worried over consumer downturn due to migration to cheaper brands and products.

The latent discomfort was very high among tenants from financial services sector, 83 per cent of these respondents were wishing if they could dispose off a quarter of their office space while another 17 per cent wished if half of their working area could be leased to somebody else.

The Confederation of British Industry and GVA Grimley survey, involving 152 respondents was conducted in August and September.

The survey report also revealed that 40 per cent of tenants were considering to take advantage of break clause in their tenancy contracts with landlords in next 2 years while one third, who appeared quite uncomfortable with the business conditions, said that they would not renew contracts which were about to expire in next few months.