Newsletter Q3 2017 UK

Newsletter Q3 2017

Indoor climate and confidence in landlord outrival price (top-10 value drivers)

65% 63% Indoor climate

58% 51% Price Good parking facilities

59% Good accessibility by car

Confidence in landlord

41% Quality and signal value of lease premises

41% Conditions on arrival

40% Adjustment options

40% Flexibility of lease agreement

35% Proximity to Metro or S-train

Source: Sadolin & Albæk Note: The results do not add up to 100% as the respondents were given multiple reply choices. Base = 400 surveyed. 178 respondents.

All interviews were conducted as telephone interviews by Megafon A/S on behalf of Sadolin & Albæk and It’s A Fact ApS.

in the Sadolin & Albæk tenant survey list more than seven parameters on average as key determinants of their preferred location. Somewhat surprisingly, confidence in the landlord ranks as the second-most important value driver among tenants. The emphasis on confidence in the landlord is manifesting itself in tenant buying behaviour, with recommendations from personal networks being the preferred starting point when looking for new lease premises. Via network ratings, tenants are indirectly reassured that they can trust a given landlord. This is supported by the findings of the Nielsen survey, where network ratings rank as the most reliable source of information. On the face of it, it therefore seems that general societal trends are mirrored in demand drivers among commercial tenants in search of new lease premises.

employing online search engines as part of their search strategy. Due to digitalisation, consumers are to a varying degree relying on online ratings in the B2C market, which is also confirmed by the Nielsen consumer survey. By employing online search engines, tenants are not only able to search the market for new premises, but may also make preliminary enquiries about a landlord. Although landlord ratings have yet to become a widespread phenomenon in the office letting market, they are common in segments of the residential rental markets, with tenants reporting and rating landlords on services such as Airbnb. Given the increasing digitalisation trend and prevalence of reporting services, it is not unlikely that this will become part of the office letting market and the commercial letting market in general. Sadolin & Albæk believes that this is a trend to monitor in future.

Confidence in the landlord as a value driver tallies with the relatively large proportion of businesses

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