Brexit and property opportunities?
What opportunities might be out there for landlords and tenants after Brexit?
Strettons' Management Director, Simon Tilsiter, was a guest on Ashfords LLP latest podcast and shares his thoughts.
Listen to the full podcast here:
Some of the questions covered include:
Why do you think the market is weakening?
"I wouldn’t say it’s a weakening market I would say it’s an uncertain one and in uncertain times deals and decisions are put off. This slows the market. In addition, the market is just that a market it builds in uncertainty to its prices. Just think about share prices or exchange rates. The property market is no different apart from the fact it’s slower to respond. So as an asset manager, someone who looks after property investments the clients, we have to consider the effect of the market and the future market on our client’s investments and at accordingly."
What can landlords do to strengthen their position if the market is weakening?
"Landlords, and here we mean owners of commercial buildings commercial tenants, need to put on their farsighted glasses and consider what the future might hold in an uncertain market. Every location, building and tenant is different but in general terms, if you own a building in a non-prime location and your tenant’s lease only has a few years left to run then a landlord might offer a tenant new longer lease in return for a slightly reduced rent or rent-free period."
What can tenants do?
"The same is true for an occupier. You may know what your landlord wants to do with their building. We act for a tenant who occupies a floor in a prime office in the West End at a rent that is about £20 per square foot below market value. The landlord wants to refurbish the building to secure higher rents. Our clients business does not need all the space that they lease from the landlord. Thus, we can use this opportunity to negotiate a surrender and a premium for our client once we secure additional space elsewhere."
If the market is weakening where are the opportunities?
"There are always opportunities in any market perhaps more in uncertain times. As ever opportunities are available for those who are well funded, know their market and are willing to look and dig and seize the opportunities they arise."
For more information or to chat to a member of our Asset Management team, please contact Simon Tilsiter on firstname.lastname@example.org.