Short-term leases deter institutional investors

Institutional property funds are being deterred from investing in regional office markets because of an excess of short-term leases, property consultancy Jones Lang LaSalle said yesterday.

Property developers and owners must focus on creating assets attractive to tenants and long-term property investors to ensure the regional markets recover.

“The ability of different markets to attract long-term regional and global investors will be of critical importance to their stabilisation and recovery,” the report said.