Cheap gas could support businesses should rents rise

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Switching to a cheap gas provider could help businesses which are concerned about the potential rise in property rents.

New property developments have been slow off the ground and this increases the risk of commercial property rents rising, according to London agency CB Richard Ellis.

Should rents rise, businesses may look for ways to lower their operating costs and changing energy suppliers to a cheap gas provider could help reduce outgoings.

Executive director of the agency Digby Flower said the government's introduction of empty rates means many buildings that would otherwise have been refurbished for companies to rent have instead been knocked down.

"City rents were £43.50 [per sq ft] at the end of 2009 and they will be £52.50 by the end of 2010," he stated.

Furthermore, higher commercial property rents are expected to continue through to 2012.

Taking action now to change to a cheap gas provider could help protect firms from future rent rises.

In the year to January 1st 2009 commercial space in the UK fell to 574.9 million sq ft, from 576.1 million sq ft in 2007, NB Real Estate recently reported.

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