It is most definitely a tenants market in Slovakia at the moment. Companies looking to rent office space in Bratislava have a great deal of choice in location and landlords are offering short lease lengths and other attractive incentives to encourage tenants to sign.
Typically landlords provide a package of fit out contribution (meaning they pay for carpets, internal partition walls, computer cabling etc.) or rent free periods or other inducements. The longer a tenant will commit for, the more the landlord will be willing to give away. Of course there is a point below which it becomes uneconomical for property owners to let their properties, and they would rather keep them empty and wait – however many landlords are discovering that this point is lower than than they had previously hoped.
There are numerous excellent deals to be had, whether companies want to rent the most prestigious new A Grade offices in Bratislava city centre, or to maximise value and head for cheaper office space further out of town. Increasingly popular are short term ‘indefinite’ lease periods, where the tenant typically commits for only a year and then has a three month notice period. This gives occupiers ultimate flexibility but it isn’t economical for landlords to adapt existing premises to meet the tenants specific requirements. Building owners won’t spend thousands of euros on bespoke building works if the tenant won’t commit to providing several years of income in return.
Tenants looking for a short term lease in their desired location and type of building, are well advised to seek professional assistance. An agent will have the market knowledge to source premises which are already matching the required specification (the right size, open plan or cellular and so on) so firms can quickly move in to an office suitable for their business and the landlord doesn’t have to spend money on modifications.
Tom England MRICS – www.modestagroup.com