Why we are seeing an increase in flexibility for commercial leases?
Whilst many of our clients and associates here in Adelaide, the coronavirus pandemic largely seems like a thing of the past, the changes to everyday life subsequent to the pandemic continue to flow. The latest of these changes has been an increase in flexibility in commercial leasing matters.
This increase in flexibility has stemmed from more staff opting to work from home, even as restrictions have eased and offices can again occupy a greater capacity. The decrease in need for office space, as well as the financial toll that the pandemic has taken on many businesses, has meant that lessees are more likely to want to opt for short term leases, with shorter extension rights. This gives lessees more options and more time to think about their company’s position, than if they were to be locked into a long term seven-year lease.
On top of this, as fewer people are occupying the workspace, there has been an increase in sub-under leases, where tenants are leasing out their unused space. Where possible, this allows the tenants to capitalise on firms that are downsizing or looking for a more temporary space during this time.
As the end of the financial year draws closer, many leases are due to end or be varied and extended. If you are a lessor and want to discuss your options, we invite you to contact our office on (08) 8410 9294 or via this form.