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Published
Nov 13, 2015
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New retail lease lengths in the UK rise to 7.5 years in 2015

Published
Nov 13, 2015

Overall commercial property lease lengths have hit an eight-year high, according to the latest research report of MSCI Inc, a leading provider of investment decision support tools worldwide. Retail leases saw the highest increase in length from 6.7 years in 2014 to 7.5 years in 2015, showing how important it is for retailers to secure and retain prime locations.



The research, sponsored by Strutt & Parker and the British Property Federation, also found that overall property lease lengths increased to 7.2 years in 2015, matching levels last recorded at the market peak in 2007.

52% of retailers renewed their tenancy at the end of a lease, compared to just 34% of office sector tenants. 80% of the retail tenants who had a right to break their lease in 2014 chose to stay in the same place, which speaks to the rising rental market in the UK.

Colm Lauder, Senior Associate at MSCI, said: “As a barometer for the wider economy, commercial property is a strong indicator of business sentiment. Improved demand for retail space reflects greater consumer spending while demand for office space highlights growth in the services sector.”

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