In Good Company: Corporate Tenants Heat the Lettings Market
Patrick Littlemore Wed 30 Sep 2015
As ever at this time of year, the London lettings market is firing on all cylinders. Londoners are competing for the best rental properties during this busy autumn season, whilst our Corporate & Relocation Services team are also working across all sectors to source accommodation for the best global talent, which London continues to attract...
Across the Capital, the volume of tenant-registrations has increased month-on-month throughout the year, and has now peaked at a ratio of ten tenants for every available rental property - a slight up-tick from nine this time last year. And as always, landlords with property boasting gardens and outside space are taking advantage of the remainder of the summer season to show their properties in the best light.
Corporate enquiries increased an impressive 20% throughout the summer months compared to the previous quarter, predominantly from corporate employees relocating from North America and Northern Europe to join the UK headquarters of their global employers.
Areas such as Shoreditch and Camden are in high demand as many eager, young professionals on corporate graduate schemes seek local accommodation. In these areas, we've identified several professional service industries where intakes of these schemes are currently prevalent, including accounting, law, technology and banking firms. Also interestingly, both Google and Facebook have recently relocated a large number of people to their growing London offices and those working in Facebook's Euston office are tending to seek rental property throughout the whole of West, North West and East London, with their requirements ranging from studio apartments to family houses.
For families, secondment placements are starting now and usually last six-to-nine months, whilst C-suite executive relocations often take place in September and October when families will want to settle into their new homes by mid-October. Being close to the best international schools is top priority for families; hence our South Kensington and Queens Park offices have seen huge corporate tenant demand due to Lyce Franais Charles de Gaulle and The American School. We recently relocated some 60 corporate employees and their families for a major oil & gas client, with many specifically seeking these locations.
Why are corporate tenants so sought-after for landlords? As the London economy grows from strength to strength, these major corporations only seek to expand their head office bases in the capital. Our Corporate & Relocation Services Department works with almost 800 corporations - predominantly blue-chip household names that seek out the best talent from around the globe; these tenants are typically extremely hard-working, and in turn, often hardly at home due to long working hours - a great combination for minimal wear and tear!
So how can landlords secure these golden tenants during such a busy time? Corporate tenants love high-spec', low maintenance properties, ideally located with seamless transport connections to Head Office locations. It's true to say, that they often have harder demands, so working with a specialist Corporate & Relocations Services team will ensure the best balance of both tenant and landlord needs. By working with an agency that offers connections to the corporate world, landlords will have exposure to all the relevant relocation agents and global mobility managers from large companies across London, which in turn, will ensure the best access to these 'golden' tenants.