Small tenants fight back against steep office rent hikes

The consultancy sector leads the struggle.

The office sector stood out as a bright spot in the otherwise lacklustre property market in 2014, with rents rising steadily thanks to a supply squeeze and stable demand. However, smaller tenants are now resisting their landlords’ attempts to hike rents, a report by Savills revealed today.

According to Savills, vacancy rates for small units inched up marginally in the fourth quarter, implying that landlords are encountering resistance from small-space occupiers.

“Although landlords are now in a better bargaining position, it seems that they are starting to face some resistance in smaller-sized lettings. This stems from tenants in the business services and consultancy sectors which are affected by domestic economic restructuring,” stated the report.