Reading, Berkshire Commercial Lettings: A Growing Market

Commercial Lettings in Reading, Berkshire: A Growing Market

Amidst the recent economic challenges, including rising interest rates, heightened inflation, and the so-called cost of living crisis, Lansley Commercial has noticed a notable trend unfolding. We’ve observed a growing popularity and heightened demand for our commercial lettings in Reading whilst conversely witnessing a slight decline in interest towards our commercial property sales.

This is not surprising, however, as recently the commercial property sales market has faced formidable challenges. High interest rates have made borrowing more expensive, and stringent lending criteria often make a purchase slightly more complex and, in some cases, require higher deposits.

Whilst we continue to achieve commercial property sales deals, it’s worth noting that we’ve observed a slight downturn in the trend.

As for commercial lettings in Reading, we’ve witnessed a significant reversal of that trend.

As a smaller, independent commercial agency located in Reading, Berkshire, we cater to the independent high street type commercial premises focusing on the retail and leisure market rather than the larger office buildings and industrial warehouse units. It’s important to note that this trend may not be universal, particularly amongst larger agencies. However, within our niche market, this is what we’re experiencing.

Here’s why we believe commercial lettings are popular in our market currently:

1. Flexibility: Commercial leases typically offer flexible terms, allowing businesses to adapt to changing market conditions and to evolving consumer demands and competition. We think that Landlords are becoming a little bit more flexible when it comes to tenants being able to negotiate more favourable lease terms with them. Clauses such as shorter terms (1 to 3 years), break clauses, security of tenure (inside the Landlord and Tenants Act), sub-letting & assignment within the lease period, rent free periods to name a few are becoming more and more popular.
2. Less Capital Outlay: Commercial leases typically require less upfront investment than perhaps purchasing a property, thus preserving capital for other business outgoings and priorities. This liquidity is especially advantageous for businesses seeking to conserve resources or maintain financial flexibility in a volatile market environment.
3. Location: Commercial leasing enables businesses to access prime locations in desirable areas without the long-term commitment or perhaps prohibitive costs associated with property ownership. This also allows businesses to establish a presence without the constraints of a permanent investment.
4. Scalability: Commercial leasing allows businesses to adjust the size of their operations as needed, whether they’re growing, shrinking, or dealing with changes in the market or economy, especially in shopping centres and arcades where spaces are flexible.
5. Adaptability: Commercial lettings offer businesses the freedom to explore new markets, test business concepts, and pivot their strategies without the long-term commitment associated with property ownership.
6. Exit Strategy: Commercial leasing provides businesses with a straightforward exit strategy at the end of the lease term or break clause. If the business needs change or the location is no longer suitable, tenants can simply choose not to renew the lease and relocate to a different property. Additionally, commercial tenants have the option to sell their business and simultaneously assign the lease to the buyer’s name. This allows for a seamless transition of both the business and the lease agreement. Another option is to evoke the break clause.
7. Access to Amenities: Many commercial lease agreements include access to shared amenities and services, such as parking facilities, security, utilities, and common areas. These amenities enhance the overall appeal of the property and provide added convenience for tenants and their employees.

For any commercial lettings advice or Landlords requiring assistance with letting their commercial properties in Berkshire and the surrounds, please contact us.

We’ve been a commercial agency in Reading, Berkshire since 1890.