Your article about the changes to legislation affecting the way leases are reflected on the balance sheet points out the potential for unintended consequences that could have a dramatic impact on the commercial market (22.01.16).
However, it does not necessarily mean bad news. In fact, a push towards shorter-term tenancies reflects an evolution that is already taking place, with landlords and propcos increasingly more openly considering flexible and swing space as part of a package.
The growing serviced and managed office sector, and the strength of funding within this market, demonstrates that this sort of package need not negatively affect the value of an investment.
Douglas Green, partner, Green Kinnear
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