The Covid-19 pandemic has had a significant impact on office occupiers and landlords which looks set to continue for some time. Whilst it has not been a mandatory requirement, the Government has advised businesses to allow employees to work from home, if possible, at various times throughout the pandemic. Many employers have implemented hybrid working either for the foreseeable future or as a permanent arrangement…
Assure Consulting is now an Approved Service Provider Member of the Flexible Space Association, the professional trade association for serviced and managed office providers. We have an extensive track record in the commercial office sector, including several Flexible Space Association members. We advise occupiers on all aspects of lease expenditure, with particular expertise in service charges and insurance…
For us to understand what will happen to Office Service Charge budgets in 2022, we need to look back. In 2021, the approach taken by office sector landlords to budgeting has been mixed. Whilst the majority presented reduced budgets, compared to 2020, many adopted a ‘business as usual’ approach, issuing increased budgets that have included substantial major works in some cases…
According to our research, Tenants are begining to protect their position to a far greater extent, with many more service charge caps and all-inclusive rents. If this trend continues, it is Landlords that will suffer the fluctuations. In turn, this directly impacts the net rent (after deducting service charge shortfalls) that they are able to secure across the let parts of their scheme…
For us to understand what will happen to Service Charge budgets in 2022, we need to look back. In 2021 service charge budgets reduced by 9% for Shopping Centres and 4% for Retail/Leisure Parks. This was mainly due to the withdrawal of major works and reduced marketing throughout the lockdown periods. There was relatively little in the way of reduced manpower costs, despite Furlough, so that’s one to look out for as we await the final reconciled service charge accounts…
