OPINION | Jon Bartlett – Rural Commercial Lettings: Why Landlord Flexibility Is Key in Today’s Market

There is no doubt that as the wider economy cools and the commercial property market adjusts, letting our clients’ rural commercial spaces has become more challenging.

However, let’s stay positive and our key take aways are that flexibility and a proactive approach are the most effective tool landlords can use to secure tenants and maintain income.

The market backdrop, in a nutshell, is that tenants have more choice and therefore have less urgency to close a deal. That said, we are seeing that for the right property, some will still act very quickly if it is an opportunity their business can’t pass on.

For landowners and farmers this means potential commercial tenants now have greater choice and stronger negotiating power. Units that might have let quickly two years ago can now sit on the market longer unless pricing, presentation and terms are adjusted.

With increased supply and slower demand, landlords who can adapt are letting space faster.

We see that successful strategies include:

• Flexible lease terms

Shorter commitments or tenant break clauses reduce perceived risk for occupiers.

• Stepped or incentivised rents

Small rent-free periods or gradual rent increases can encourage early occupation.

• Realistic rent levels

Pricing should reflect both rural location and property condition, as appropriate.

•  Smart yards

It may seem mundane but in a competitive market, tidy surrounding and smarter yards tend to win tenants over.

What we are still seeing a good demand for is yard space. This is routinely an underrated asset on many farms and presents a great opportunity. However, even this segment is seeing slower uptake compared to last year. Ensuring clear access, good surface condition, and secure fencing all make yard space more lettable and justify higher rents. At Howie Kent, and Co we understand the rural market’s unique balance of opportunity and constraint and we can help you position your property to attract and retain reliable tenants in today’s competitive environment. We regularly advise on small, cost-effective upgrades that can make all the difference: insulation, lighting, security, and better site access are simple improvements that help rural buildings compete with purpose-built industrial estates.

If you’re finding it difficult to let your rural buildings or yard space, the team and I are here for clear, practical advice. The summary is, there are still opportunities out there and we’re more than happy to pop out to meet with you to discuss how you can realise them.

Jon Bartlett