By Stefano Novarini and Denis Perri.
The commercial property rental market is going through a difficult period due to a significant imbalance between supply and demand. Several trends and changes are influencing this scenario:
- Reduction in office space: the increase in remote working has led many companies to reduce the physical space dedicated to offices. This transformation has led to a decrease in demand for traditional office space; contributing to the imbalance in the commercial rental market.
- Reduction in production and logistics space: the outsourcing of certain operational activities has reduced the need for production and logistics space. Companies are looking for more efficient and flexible solutions; further reducing demand for these spaces.
- Closure of retail outlets: with the exception of certain specific activities and particular areas; there has been a continuous closure of many retail outlets around the world. This phenomenon is due to various factors; including the growth of e-commerce and changes in consumer habits.
In addition; in 2022 and 2023; there was a sharp rise in ISTAT indices; leading to significant adjustments in rents; regardless of property value. This further complicated the situation for many tenants; increasing operating costs and putting pressure on profit margins.
ERA Group is a leading global consulting firm in cost and process optimisation. We can help your company quickly renegotiate and optimise the rents for your offices; shops; warehouses or production units. This process can generate significant savings that can be reinvested in your company; improving your competitiveness and operational efficiency.
Recent Case Studies
- Credit Institution: For a major credit institution; we renegotiated branch rents; generating average savings of 19.4%.
- Biomedical Company: For a well-known company operating in the biomedical sector; we generated savings of more than €500;000 by renegotiating the rent for its main production site.
