EUROPEAN LANDLORD-TENANT SURVEY 2009.indd

BUSINESSBRIEFING

BUSINESS BRIEFING | SPRING 2009

Cushman & Wakefi eld LLPEuropean Headquarters43/45 Portman SquareLondon, UK W1A 3BGwww.cushmanwakefi eld.com

CONTENTS EXECUTIVE SUMMARY

SPRING 2009

EXECUTIVE SUMMARY

1 Introduction

LOCATION AND BUILDING FACTORS

2 Location Preferences

3 Building Preferences

4 Building Dimensions

4 Infl uence of Building Factors

5 Lease Terms

DEMAND FOR SPACE

5 Space Utilisation

7 Occupational Densities

8 Factors Infl uencing Demand for Space

9 Expansion Space

9 Use of Real Estate to Counter Economic

Downturn

SUSTAINABILITY

11 Focus on Sustainability

11 Occupation of Green Buildings

11 Premiums for Green Buildings

12 Environmental Ratings

14 Advantages of a Green Building

15 Obstacles to Green Buildings

CONCLUSION

ABOUT CUSHMAN & WAKEFIELD RESEARCH

EUROPEAN LANDLORD & TENANT SURVEY 2009

Cushman & Wakefi eld’s third European Landlord & Tenant survey focuses on attitudes to occupation of space and environmental issues. A total of 750 tenants and landlords took part in the survey. Th e business environment and the property market have changed considerably since the last survey in 2007, which was undertaken at the height of the market. A number of trends have accelerated as the downturn in the economy infl uences tenant behaviour and the survey highlights the increasing focus on the use of property to lower costs.

INTRODUCTION

Th is survey focuses on how tenants are anticipating performance in the current economic climate and what are the implications in how they occupy space. Consideration of environmental issues and working practices and their implications for property are the mainstay of the research. Th e survey looks in detail at location and building parameters and their infl uence on the decision to lease or purchase a building. It considers how tenants have changed the way in which they occupy space and what factors will infl uence the demand for space moving forward, Analysis of green issues such as paying premiums for green space and the importance of diff erent environmental rating systems are also discussed.

Analysis across sector and geographical region was undertaken to highlight any key variations in attitude to these aspects, to assist landlords, and indeed tenants, who may operate across borders and also to help target specifi c sectors.

Th is is the third year C&W have undertaken such a survey and ensures that we continue to stay abreast of key occupational issues in order to advise landlords, developers and tenants in how to maximise their utilisation of property.


A CUSHMAN & WAKEFIELD PUBLICATION


LOCATION PREFERENCES

Location factors remained constant year on year and there is a general consensus as to what makes a good location. Th e majority of those surveyed prefer a city centre or edge of centre location, accounting for three-quarters of the total sample. (see fi gure 1).

Being close to a public transport hub is the main location factor, followed by accessibility by car. Th ese two were the top factors in 2007 from both a landlord and tenants perspective. Th e least important factors remain being close to a vibrant retail environment or other leisure amenities, the latter being the least important for the second year running. Tenants seem to pay less attention to these two factors than landlords. (see fi gure 2).

Tenants place diff erent levels of emphasis on location factors across Europe, although near to a public transport hub is equally important across all regions. Accessibility by car is of signifi cantly lower importance to UK tenants, (3.6) than to Central European tenants who rate the factor highest (4.4). Western European tenants rank proximity to the city centre relatively low (3.2) compared to tenants in the UK and Russia (3.7). UK tenants place more emphasis on proximity to other amenities than their counterparts across mainland Europe, with Russian and Western European tenants ranking this as the least important location factor. Being located close to public car parking was of greater importance to Southern European tenants, than any other region.


FIGURE 1: WHERE IS YOUR IDEAL OFFICE LOCATION IN THE FUTURE?

FIGURE 2: IMPORTANCE OF LOCATION FACTORS (5 IS MOST IMPORTANT)




BUILDING PREFERENCES

Th ere is still a diff erent emphasis on building design factors but the variation in opinion and order remains constant. What is notable this year is that energy effi ciency increased in importance to both landlords and tenants, along with natural ventilation and wireless technology. Natural light remains the most important building design factor as in 2007. Car parking for all increased in importance but car parking for senior management is less popular this year. Despite the purported move to greener buildings, sustainable building materials and whether the building had a BREEAM or LEED rating are fi rmly entrenched towards the bottom in terms of importance, however the latter is in part due to the limited number of existing buildings with these rating systems.

Southern European tenants place a much greater emphasis on natural light, than tenants from other regions. UK tenants rank energy effi ciency as the most important building design feature and this is also an important factor to Southern European tenants. Th ose located in Central & Eastern Europe are more likely to consider air conditioning and car parking as the most important building design features. Ensuring HSE standards are met was more important to tenants in Western Europe, while UK tenants are least concerned about this factor. Th ere is a wide regional variation in attitudes towards physical design features such as column free space, architectural merit, large spacious entrance hall and controlled lobby access.





BUILDING DIMENSIONS

Th e ideal fl oorplate size appears to have decreased for tenants, while landlords are fi rmly focused on large fl oorplates. More than a third of landlords state that their ideal fl oorplate size was in excess of 2,500 sq.m, compared to just 22% of tenants. Th e most popular fl oorplate size for tenants is 500-1,000 sq.m. (see fi gure 3). Th e ideal fl oor to ceiling height was 2.8m, although a higher proportion than 2007 stated 2.8m plus.


INFLUENCE OF BUILDING FACTORS

Tenants were asked how much infl uence does the presence of a number of building factors have on the decision to lease or purchase a new building. (see fi gure 4). Security has the greatest infl uence overall, followed by uninterrupted power supply and diversity of telecom/data provision. Security is the number one factor for all tenants around Europe, but more so for UK tenants. Tenants in Central & Eastern Europe are likely to be most concerned about uninterrupted power supply. Building prominence and planning depth are also key factors, particularly to tenants in Southern Europe. Tenants pay less attention to fl oor loadings, signage opportunities and on-site services in terms of infl uencing the overall decision. Th e latter is however signifi cantly more important to tenants in Southern Europe.

FIGURE 3: IDEAL FLOORPLATE SIZE FOR A CITY CENTRE BUILDING




LEASE TERMS

Increasing fl exibility in terms of lease length to refl ect the changes to business strategies over time has long been a major desire of tenants across Europe; however this is directly at odds with landlords who wish to maximize their income stream. (see table 1). Not surprisingly, this polarization in attitude is particularly evident in the diversity of opinion between landlords and tenants views as to what their ideal lease term would be. Th is year we asked how the ideal lease term would vary depending upon the size of unit. Th ere is a direct relationship between the size of unit and the ideal length of lease for both tenants and landlords. Not surprisingly given the nature of leases in the UK, landlords ideal

lease terms for each unit size is longer than their counterparts in other parts of Europe. However, the divergence between landlords and tenants is greatest in the UK, while there seems to be greater accord in terms of ideal lease terms between landlords and tenants in Central & Eastern Europe.


FIGURE 4: HOW MUCH INFLUENCE DO THE FOLLOWING HAVE ON A DECISION TO CHOSE A BUILDING? (5 IS GREATEST INFLUENCE)

TABLE 1: IDEAL LEASE TERM BY UNIT SIZE

Less than 1,000 sq.m 1001-2,500 sq.m 2,501-5,000 sq.m More than 5,000 sq.m

Landlord 5.9 years 7.5 years 9.7 years 11.5 years

Tenant 4.4 years 5.7 years 7.1 years 8.5 years

SPACE UTILISATION

With pressures on tenants to reduce the bottom line, there continues to be a move away from cellular offi ces to a combination of open plan and cellular offi ces. Th e majority of respondents (45%) now utilise a combination of space with more open plan, a rise of 4% on the 2007 survey. More than half of the tenants surveyed changed the way they utilise their space over the last 12 months with both desk sharing and fl exible working becoming increasingly popular. (see fi gure 5).




Sixty percent of all tenants also anticipate that space utilisation will change over the next 12 months, with open plan working and fl exible working practices increasingly considered. (see fi gure 6). UK tenants are most likely to have changed the way in which they occupy their offi ce space, with just 33% stating that they have seen no change over the last 12 months. Tenants in Central & Eastern Europe are least likely to have made any changes in that period. A combination of higher rental levels and deteriorating business sentiment in the UK is likely to see UK tenants consider how they can use space more advantageously. Th is is refl ected in the fact that the UK has the highest proportion of tenants anticipating further changes in their utilisation of space over the next year. Just 28% of UK tenants do not anticipate making further changes over the next 12 months. Tenants in Central & Eastern Europe are also least likely to adopt changes to space utilisation.

DEMAND FOR SPACE

FIGURE 5: CHANGES TO SPACE UTLISATION OVER LAST 12 MONTHS

FIGURE 6: ANTICIPATED CHANGES TO SPACE UTILISATION OVER NEXT 12 MONTHS




OCCUPATIONAL DENSITIES

Changes to how tenants occupy space has a major infl uence on occupational densities. Th e average fl oorspace per worker in Europe fell marginally from 12.8 sq.m to 12.4 sq.m between the surveys. (see table 2). Over the last 12 months 40% of tenants saw their space utilisation intensify, and more than a third anticipate that it will become denser over the

DEMAND FOR SPACE

TABLE 2: AVERAGE FLOORSPACE PER WORKER (SQ.M)

Region UK & Ireland Western Europe Southern Europe Central Europe Average

Average fl oorspace per worker 2009

11.6 13.7 12.9 10.9 12.4

Average fl oorspace per worker 2007

12.1 14.9 12.4 12.0 12.8

next 12 months. Financial services tenants are leading this trend, with more than half already having reduced their space per person over the last 12 months and 40% anticipating fl oorspace per worker to become increasingly dense. Looking forward, TMT companies are most likely to adjust fl oorspace per worker downwards in 2009.

Companies in the UK are most likely to have seen a decrease in the fl oorspace per person over the last 12 months, with 44% stating that their space densities had become denser. In comparison just 29% of tenants in Southern Europe agreed that their space utilisation had become denser over the same period. It must be remembered however that property costs are relatively higher in the UK, in terms of rent and property taxes, and an increase in space densities has been one way of off setting these costs. Indeed, half of UK tenants anticipate their space utilisation to become more dense over the next 12 months, while tenants in Central & Eastern Europe are the most likely to see no change to how they occupy space.




FACTORS INFLUENCING DEMAND FOR SPACE

In the current economic malaise, there are a number of over riding factors that are anticipated to infl uence the demand for space. Th e most dominant are making space more productive and overall cost cutting policies with more than a quarter anticipating these will have the most infl uence on demand in the near term. Consolidation will be a major driver of the demand for space while the reduction in employee numbers is now regarded as a major pressure on space needs. As with 2007, use of wireless technology, increased use of homeworking and the shift to lower cost locations are the lowest ranked infl uences. (see fi gure 7).

Professional services companies anticipate reductions in fl oorspace per worker and reduction in employee numbers to have a greater infl uence on demand for space, while signifi cantly higher proportions of fi nancial services tenants see relocation to cheaper locations to be a greater infl uence on demand than any other sector. Tenants in Central & Eastern Europe see consolidation of occupancies and increased use of homeworking as being less of an infl uence than any other region, while those in the UK see reduction in employee numbers and fl oorspace per worker to be far more infl uential trends than other regions of Europe.

DEMAND FOR SPACE

FIGURE 7: WHICH FACTORS ARE LIKELY TO HAVE GREATEST IMPACT ON THE SPACE TENANTS REQUIRE?




EXPANSION SPACE

More than half of tenants felt that they occupy space for future expansion. (see fi gure 8). In the current market, this space could potentially be released onto the market as tenants come under increasing pressure to cut their costs.

DEMAND FOR SPACE

In addition, 70% believe that they could occupy their existing space more effi ciently, a rise of more than 10% on 2007. If tenants consider this option, then the potential for more grey space to come to the market increases. Th is is a more worrying trend in Western Europe overall, with 81% of those in the UK and 69% of tenants in other Western European countries stating that they believe they could occupy space more effi ciently.

At this stage it does not appear that tenants are anticipating this option, with just under 30% expecting to reduce the overall space they occupy over the next 12 months. Central European tenants are least likely to be considering reducing space, followed by Southern

FIGURE 8: DO YOU OCCUPY SPACE FOR FUTURE EXPANSION?

European tenants, while those in the UK and Western Europe are most likely to consider this course of action. Th ere is already evidence of some subletting space being marketed in a number of key Western European offi ce markets, but currently it is still at low levels.

USE OF REAL ESTATE TO COUNTER ECONOMIC DOWNTURN

Both landlords and tenants are considering using property to counteract the impact of the economic downturn. (see fi gure 9 & 10). In fact just 9% of landlords and 26% of tenants do not anticipate using their property in this manner. In expectation of falling rents, almost one half of tenants are anticipating renegotiating their existing leases to reduce the rental commitment, while a further third of tenants are anticipating subletting surplus space. Subletting space is the most likely route for UK tenants, while Western and Central European tenants are keener to renegotiate their existing lease terms. Consolidation of occupancies is the most popular way of reducing property overheads in Southern Europe. Relocating to a cheaper location, whether in the same country or across borders has limited appeal in today’s marketplace for tenants. Th e upheaval and upfront costs associated with relocating and curbs on capital expenditure within most companies mean that this is not a feasible option in cash starved times.




Eff ective rents are falling and according to our survey are likely to drop further, with over half of landlords expecting to increase the incentives on off er to attract tenants while only 37% anticipate reducing headline rents. Landlords in Western Europe, especially the UK are most likely to increase incentives with two third anticipating this course of action. In the UK, more than half of landlords are anticipating reducing headline rents, although this

DEMAND FOR SPACE

will be resisted to a greater extent in other regions of Europe. Rents in the UK are already beginning to come under downward pressure, especially in London, and the weaker sentiment evident in the marketplace is refl ected in the responses.

Th e slowdown in development is also re-enforced by the survey, with half of all developers expecting to curb activity. Th is is a trend that was evident across the whole of Europe, although is reportedly more likely to occur in the UK and Central Europe. With a lack of funding and preletting a prerequisite for construction, supply levels across Europe should be prevented from severe oversupply, which will also support prime levels over the medium term. Th ere appears to be a window of opportunity for tenants to take advantage of the decreasing net eff ective rents and the potential reduction in rents before more positive sentiment returns to the landlord market.

FIGURE 9: ANTICIPATED ACTION BY TENANTS TO OFFSET IMPACT OF ECONOMIC SLOWDOWN

FIGURE 10: ANTICIPATED ACTION BY LANDLORDS TO OFFSET IMPACT OF ECONOMIC SLOWDOWN




FOCUS ON SUSTAINABILITY

Sustainability appears to have taken a back seat in terms of media profi le over the last 12 months as the global economy has deteriorated and businesses focused on adapting to the changing circumstances. Interestingly however, almost 40% of those surveyed state that their company is focusing more on sustainability issues than a year ago and just 5% less. More than half of the Southern European companies increased their focus on environmental issues, while Eastern European, particularly Russian companies are more likely to be focusing less on the issues.

OCCUPATION OF GREEN BUILDINGS

In terms of property, a higher proportion of tenants state that they occupy an environmentally friendly building, increasing from 34% to 42%, while just under 60% of landlords own environmentally friendly buildings, a similar proportion to 2007. With no set defi nition of what constitutes an environmentally effi cient building, it is not diffi cult to see why tenants and landlords give themselves the benefi t of the doubt when considering their own building, but this uncertainty was refl ected in the fact that one in four tenants did not know if their building was environmentally effi cient.

As in 2007, Southern European buildings are thought to be the least environmentally effi cient (38%) and UK tenants are more likely to think that they occupy or own an environmentally effi cient building (63%- an increase from 49% in 2007).

PREMIUMS FOR GREEN BUILDINGS

Th ere was a small downturn in the proportion of both landlords and tenants who would expect to pay a premium to purchase or lease a green building between the surveys. Nevertheless, a higher proportion would pay more than not, with 39% of tenants and 44% of landlords willing to pay a premium. (see fi gure 11).

SUSTAINABILITY

FIGURE 11: WOULD YOU PAY A PREMIUM TO LEASE/PURCHASE AN ENVIRONMENTALLY EFFICIENT BUILDING?

Tenants Landlords




Of those landlords and tenants who would pay more, the majority (53%) expect to pay up to 5% more for green space, with just 4% willing to pay more than 10% above the market rate. Professional services companies are overall prepared to pay the most, with over two thirds stating that they will pay 6-10% more. Across all regions, a higher proportion of landlords are prepared to pay a higher premium than tenants, with over a third willing to pay more than 5% above market rent. Central & Eastern Europe tenants seem to be prepared to pay a higher premium than other regions, with 11% stating that they will pay more than 10%. (see fi gure 12).

To date there has been little evidence to support whether or not environmentally effi cient buildings command a higher rent or whether tenants will follow through with their good intentions. Interestingly, more than half of those who had leased or purchased a building that had an environmental rating believe that they paid the market rate for the building. A quarter believe that they paid a premium of up to 5% and a further 15% believe that they paid between 5-10% more than the market rent. As economic growth slows the ability for landlords to charge a premium will be greatly reduced and fi nding a tenant will be the most overriding issue to secure short term income.

Market rent was most likely to be paid in the UK, in part due to the falling market, and 70% believe that they paid market rate. Southern Europeans were more likely to have paid a premium, but that was only up to 5% more than the market rate.

ENVIRONMENTAL RATINGS

Th e EU directive on the energy performance of buildings is aff ecting awareness of energy use in all new buildings (and existing ones following renovation/refurbishment). Of the total sample, a similar proportion to 2007 state that it will have an impact on their purchasing or leasing of buildings (69%), however the proportion who anticipate Environmental

SUSTAINABILITY

FIGURE 12: HOW MUCH WOULD YOU BE WILLING TO PAY?

Tenants Landlords




Performance Certifi cates (EPCs) having an infl uence in the immediate future has fallen to 19% of landlords and 16% of tenants. Southern European companies are more likely to be infl uenced in the short term than any other region, while UK companies are likely to consider other issues just as or more important to the fi nal decision. (see fi gure 13). Tenants, predominantly multinationals, are starting to specify in their requirements the need for a minimum environmental standard for their buildings. Th is is borne out of their Corporate Social Responsibility commitments and the desire to reduce the operational costs of their corporate real estate portfolio. Half of those who had leased or purchased buildings over the last 2 years had factored a building’s green credentials into the decision. Tenants (55%) were however, more likely to have considered this as a factor than landlords (42%). TMT companies were the most likely to have factored in green credentials when choosing a building, followed by industrial companies. From a regional perspective, Central European companies were most likely to have considered green credentials, with a slightly higher proportion of tenants than landlords. Companies based in Russia were the least likely to consider the green aspects of a building.

SUSTAINABILITY

FIGURE 13: WILL ENERGY EFFICIENCY RATINGS INFLUENCE YOUR CHOICE OF BUILDING?

FIGURE 14: ENVIRONMENTAL RATING STANDARD OF THOSE WHO HAVE LEASED OR PURCHASED SPACE IN LAST 2 YEARS




SUSTAINABILITY

FIGURE 15: MINIMUM RATING STANDARD CONSIDERED FOR A NEW BUILDING

Of the buildings leased or purchased over the last 2 years, the majority of buildings taken were BREEAM very good rated (21% of landlords/14% of tenants), followed by LEED Gold Standard (12% of landlords/9% of tenants). However, while stating that green credentials had been factored into the decision, a signifi cant proportion did not know what rating system the fi nal building had. Th e achieved rating systems will however be a function of

the availability of rated offi ces and rating systems present in a given marketplace. (see fi gure 14).

Overall, EPC’s appear to be the minimum environmental rating that both tenants and landlords will consider for new builds. Twenty nine percent of landlords and 21% of tenants state that this is the minimum standard that they would consider, while BREEAM was more favoured than LEED as a rating system overall. BREEAM Very Good was cited by 15% of landlords and 10% of tenants, followed by BREEAM Good (11% of landlords/8% of tenants) and LEED Silver (6% of landlords/8% of tenants) as their companies minimum environmental standard. BREEAM was the most popular rating standards across all regions of Europe, but particularly in the UK where it originates. (see fi gure 15).

ADVANTAGES OF A GREEN BUILDING

An increasing number of tenants, investors and developers recognise that green buildings are a business asset and choosing a green building will become increasingly important over the short term. (see fi gure 16). When considering a building’s environmental credentials, more focus is placed on energy in use rather than on the actual structure of the building. Th e most important factors in choosing an environmentally friendly/green building is to take advantage of the reduction in energy and water consumption in use (24% of total sample) followed by the savings in costs of running the buildings (23% of total sample). Th ere was then a considerable gap between third placed reduction in CO2 emissions (9% of total sample). Just 7% thought that the use of sustainable/renewable building materials is the most important, while 6% believe that enhancing corporate image is the main concern. Th ere was some minor variation in the order of importance between landlords and tenants, with landlords placing saving costs in running the building as most important, while tenants focused more on reduction in energy and water consumption in use but on the whole




SUSTAINABILITY

there was agreement as to the main reasons in choosing an environmental building. Th ere were some regional variations, most notably a signifi cantly higher proportion of companies in the UK (38%) placed savings in costs as the most important factor compared to other regions, while Russian companies were more focused on use of renewable materials in the construction of buildings (27%).

FIGURE 16: MOST IMPORTANT FACTOR IN CHOOSING A GREEN BUILDING

OBSTACLES TO GREEN BUILDINGS

Most companies state that they would like to occupy a green building but the number who actually do is much lower. A lack of supply is one of the main obstacles facing tenants considering a green building, with 30% of companies stating that this is the main barrier. Companies remain convinced that renting a green building is more expensive (15%) and that the payback period is too long (14%). Th ere are some marked variations in responses between landlords and tenants, with the overriding factor from a tenants perspective being the lack of building choice, while landlords are more divided in their opinion. Being locked into an existing lease was seen as more problematic from a tenants perspective while landlords believe more than tenants that the payback period is too long and there is limited evidence to support claims on energy use. (see fi gure 17 for landlord/tenant variations).




It would seem that more evidence to support the benefi ts of green/environmentally friendly buildings is needed to convince both tenants and landlords that their occupation provides long term benefi ts. Based on some of the responses to the survey, those tenants/landlords that have already leased/purchased a green building have refuted some of the perceived barriers such as the cost of purchasing/leasing a green building.

Southern Europe appears to have the least choice in buildings, with almost 40% stating that this is the biggest hurdle, compared with just a quarter in Central Europe. Th e latter are more likely to think that the rent is more expensive than other regions, while a higher proportion of UK companies are likely to think the payback period is too long. Central & Eastern European tenants, particularly those based in Russia are least likely to know what constitutes a green building.

SUSTAINABILITY

FIGURE 17: MAIN BARRIER TO COMPANIES OCCUPYING GREEN BUILDINGS




Th e survey continues to highlight that there are still many areas where landlords and tenants have opposing views. Th is is understandable given that an owner of the offi ce product will tend to value the building in terms of its economic value, whilst the tenant will be focused on the utility of the building i.e. usefulness to his organisation’s needs.

Location is key to the success of what makes a good building and both landlords and tenants have a conformity of opinion regarding location, but there continues to be a disparity when it comes to understanding building design factors, which will limit the success of attracting tenants to buildings. Landlords who build effi cient good quality buildings will continue to fi nd their space in demand, particularly as tenants are increasingly discerning about what they want from a building and aware of the impact the right building can have on their business. As demand for space ebbs away in the coming 12 months and supply increases, landlords will reap the benefi ts of providing buildings that match the needs of tenants.

Th e current economic situation is having a greater infl uence on tenant behaviour and accelerating a number of trends identifi ed in the last survey. Th e market is shifting in the tenants favour and a number of expected trends only confi rm this view. Th e threat to letting activity from changing working practices and increasing space densities continues apace and is now evident across the whole region. Tenants still believe that they could occupy space in a more effi cient manner and make potential savings in both terms of space and cost. As yet, few tenants have made any great steps to increase the effi ciency in utilising their space but if the economic slowdown continues, there is greater potential for space to be returned to the landlord or sublet, thus dampening sentiment in the European offi ce markets. Coupled with using property to reduce the impact of the downturn, rental values will come under further downward pressure. Eff ective rents will come down, in advance of headline rents and create opportunities for those tenants in a position to move but will reduce income fl ows to landlords.

While the economy has been at the forefront of companies attention, sustainability issues have not disappeared and are continuing to infl uence how both developers and tenants approach their property. Progress remains slow, and in the current economic climate the supply of green buildings will remain limited. With both tenants and landlords focusing on cashfl ow, the emphasis is likely to turn to achieving the best deal regardless of the greener issues.

On the whole there is still variation between tenants needs across diff erent regions of Europe. Greater communication is still needed between landlords and tenants, to ensure that appropriate offi ce buildings are completed, in terms of location, quality and scale, and to warrant the long term success of new developments in diff erent parts of the region. Th is survey is just one way that the variation in attitudes between various users of property can be highlighted. Th is understanding is critical, and never more so than in the current economic climate as competition for tenants intensifi es, and will shape the advice to landlords to ensure that they remain successful in attracting tenants.

CONCLUSIONS


ABOUT CUSHMAN & WAKEFIELD RESEARCH

Cushman & Wakefi eld research staff are located throughout the world with the EMEA service co-ordinated in London, the Americas in New York and Asia in Hong Kong.

Research provides a strategic advisory and supporting role to clients and other departments within the fi rm, with extensive and continuously updated information systems covering property, economic, corporate and social trends.

Consultancy projects are undertaken on a local and international basis. We provide in-depth advice and analysis, producing detailed market appraisals on current and future trends for developers, investors and occupiers. We also advise on location and investment strategies and portfolio performance. Typical projects include a mix of the following:

• Location analysis, ranking and targeting for occupation or investment• Future development activity and existing supply /competition• Demand analysis by retail /industry sector• Rental analysis, forecasts & investment & portfolio strategy• Floorspace audits, tenant-mix assessment & catchment /expenditure analysis• Retailer, occupier and consumer surveys• Pedestrian fl ow analysis & local employment studies

Cushman & Wakefi eld is known the world-over as an industry knowledge leader. Through the delivery of timely, accurate, high-quality research reports on the leading trends, markets around the world and business issues of the day, we aim to assist our clients in making property decisions that meet their objectives and enhance their competitive position.

In addition to producing regular reports such as global rankings and local quarterly updates available on a regular basis, Cushman & Wakefi eld also provides customized studies to meet specifi c information needs of owners, occupiers and investors.

Cushman & Wakefi eld is one of the world’s largest commercial real estate services fi rms. Founded in 1917, the fi rm has 227 offi ces in 59 countries, and 15,000 talented professionals. Cushman & Wakefi eld delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, lenders and investors through every stage of the real estate process. These solutions include representing clients in the buying, selling, fi nancing, leasing and managing of assets. The fi rm also provides valuation advice, strategic planning and research, portfolio analysis, and site selection and space location assistance, among many other advisory services.

This report has been prepared solely for information purposes. It does not purport to be a complete description of the markets or developments contained in this material. The information on which this report is based has been obtained from sources we believe to be reliable, but we have not independently verifi ed such information and we do not guarantee that the information is accurate or complete.

To discuss your immediate needs please contact:

Elaine RossallEuropean Research GroupEuropean Headquarters43 /45 Portman SquareLondon, W1A 3BG, UKTel: + 44 (0)20 7152 [email protected]

Eric PeetersHead of European Business SpaceAvenue des Arts58 bte 7BrusselsBelgium 1000Tel: +32 2 546 [email protected]

Michael CreamerHead of Client Solutions, EMEA 43 /45 Portman SquareLondon, W1A 3BG, UKTel: + 44 (0)20 7152 [email protected]

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For additional copies ofthis report, e-mail Elaine Rossall:[email protected]

© 2009 Cushman & Wakefi eld LLPAll rights reserved.Cushman & Wakefi eld LLPEuropean Headquarters43/45 Portman SquareLondon W1A 3BG, UK



EUROPEAN LANDLORD-TENANT SURVEY 2009.indd

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Transcript of EUROPEAN LANDLORD-TENANT SURVEY 2009.indd