Full of empty promises: Empty rates is an industry hot potato that shows no sign of cooling down. But is it really so bad?
Last year’s announcement that the government was to cut empty rates relief from April was met with horror within the industry, and the decision prompted wide and heated debate. Even after all the talk, the issue still stirs up a myriad predominantly of negative sentiments among industry watchers (p32).
There is doubt many of these views are justified – as liabilities are forecast to leap through the roof. But with the empty rates here to stay, it is time to think of solutions to alleviate them, or at least take steps to avoid drastic measures such as leaving buildings partially built, or even knocking down empty buildings.
Some companies are trying to be more innovative in how they let their properties, with short-term leases a popular answer. Different solutions will work for different companies, but whichever one you decide on, now is the time to think of how to work with the cutting back on empty rates payments, rather than the woes it will bring.
Into the unknown
The dreaded credit crunch is finally starting to bite the shed sector (p16). Considered the property industry’s “Steady Eddy”, industrial is looking increasingly unsteady. But there is still some light to be seen. Some are brave enough to predict that the logistics and distribution market has a very good future and the medium- to long-term outlook is positive (p6). At the moment, that attitude is good news, and long may it continue.
Noella Pio Kivlehan
EG Industrial editor
