High vacancy levels across the country, together with weak demand will continue to put pressure on office rentals, and the market will remain a challenge for at least the next 12 months. With vacancy levels remaining under pressure, landlords are offering competitive rentals with substantial tenant installation allowances, low escalations and long rent-free periods. Attractive broker incentives are proving important tools in this market.
Tenants are playing landlords off against each other, with more time being taken to commit to leases. In this climate, we have embarked on an innovative marketing strategy and have launched the following incentives:
• Competitive rental levels › increased tenant installation allowance
• Longer rent-free periods
• Increased commission for brokers.