28 May 2008, 12:34 PM
  • A new survey by the CBI and property consultant, GVA Grimley, showed that the credit crunch could be the perfect opportunity for retailers to negotiate better lease conditions.

The survey asked firms how the current economic climate has affected their ability to do business. A mere one percent said they thought the credit squeeze offered them any opportunity to derive value from their portfolio. Some are, however, taking positive steps to manage their property: 22% of companies have restructured a lease to lower overall occupancy costs and 19% have obtained a reduced rent.

Howard Cooke, director of GVA Grimley, says, “The impact of the credit squeeze, while acting as a drag on the economy as a whole, is still mostly making itself felt in the financial services sector. Nevertheless, at times like these, firms in all sectors need to be thinking of ways they can manage their property better.

“Much can be gained by restructuring a lease, reducing your rent, or paying to break a contract. Currently, firms appear unaware that the credit squeeze presents opportunities as well as threats.”