How many companies move at lease expiry?

According to new research by CBRE, the majority of companies choose to remain in their existing premises at lease expiry,

The survey analysed 500 companies in the UK and Netherlands to analyse occupier behaviour when ‘stay or go’ property decisions are being evaluated. Of those companies contacted, just 12% moved the last time their lease expired and of those who had moved premises nearly two-thirds had changed their footprint, with 50% expanding.

A large proportion of companies cited the relationship with the building management company as a significant factor in the decision on whether to stay or go.

Research by Metropolis has shown that companies in London are far more ready to relocate on lease expiry, with current trends indicating close to 60% launching searches within two years of lease expiry and 40% actually moving. In London the raising of rents or redevelopment are often the triggers for a move. In the rest of the UK there is less enthusiasm for relocation, with around 20% relocating at lease expiry.

In an age when office leases are shorter and shorter, with more and more break options, it is clear that landlords and managing agents need to be on top of their game to prevent occupiers from choosing to move out of their properties.

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