Vacancy has increased for 76% of commercial landlords over the past year, according to a survey of 350 UK commercial property owners commissioned by SafeSite Facilities and carried out by Censuswide.
Asked whether vacant commercial property in their portfolio had increased, decreased or stayed the same compared with a year ago, 76% said it had increased and 42% said it had increased significantly. Only 3% said it had decreased, according to the survey.
The research also suggests vacancy is not simply a short-term void between leases. Some 81% of landlords said they had at least a tenth of their portfolio vacant for more than three months during the past year, while 20% said between 26% and 50% of their portfolio had been vacant for that long.
By sector, 78% of warehouse and industrial landlords reported a rise in empty property, followed by 75% of office landlords, 72% for retail and 68% for hospitality and leisure property, according to the survey.
“These figures are concerning for commercial landlords because empty properties are clearly bad for business and also come with additional risks and costs,” said Paul Goossens, operations director at SafeSite Facilities (pictured).
“Keeping an empty property secure against the threat of vandalism, squatting, fire and flooding, for instance, is a challenge.
“The market is complicated by the cost of living, international political events and a rise in flexible working, so there is no simple solution on the horizon. And it is not only the high street that is suffering. We are seeing an increase in empty commercial property across the board.
“The most recent RICS empty property monitor revealed a net balance of -19% in tenant demand and the headline occupier sentiment index for all commercial property sectors came in at -10%.”
Goossens added: “This issue goes across the board and it’s crucial that landlords take proper steps to protect empty property and seek professional advice around security and risk assessment.”
