Pictured above: Andrew Cosnett at Heartlands Park, one of Birmingham's largest industrial parks which King Sturge act for

Never before has customer satisfaction been so high on a landlord's agenda says King Sturge's new industrial partner, Andrew Cosnett, as lease lengths have shortened and tenants in the main, hold the balance of power.

Occupiers will now choose between 'good and 'bad' landlords and how a landlord enters into and manages their long term relationship with tenants will be some of the key market differentiators in a difficult market.

Andrew Cosnett who is instructed on one of Birmingham's largest industrial sites, Heartlands Park in Bromford, Birmingham, knows only too well the importance of listening to new and potential occupiers currently occupying two thirds of the 1 million square foot of industrial and warehousing units.

"Whilst the industrial market is showing signs of recovery in The Midlands, the current conditions still present landlords with a whole new set of challenges.  With shorter lease terms comes the opportunity at every break or renewal for an occupier to leave the premises, although in reality they may prefer to stay. However, the threat is always there and whilst they may not have any intention of leaving, they have the leverage and bargaining power to call the shots with landlords.

"For this reason, service is now next to rent on an occupier's tick list.  Far greater emphasis it put on a landlord's flexibility and responsiveness and those who fail to deliver on customer satisfaction will probably loose out."

Clearly schemes in prime locations such as Heartlands Park will always tip the balance of power slightly in favour of the landlord, however, the pressure on landlords to avoid a scheme picking up void rates does have a bearing on the deals they are willing to do and incentives they are willing to offer.

The abolition of empty rates has also had a massive impact on the market and a landlord is more likely to make a commercial decision and be more flexible in its terms, than attract losses on a building.

"Of course it's always good business practice to build and maintain a good relationship with occupiers.  By keeping close to them and listening to their needs, you can respond quickly to their requirements."

Andrew cites a case on Heartlands where white goods supplier, Beko, is helped over the peaks and troughs of its business. "They have a core space of 250,000 sq ft but need the ability to increase up to 500,000 sq ft, depending on take up of units in the retail outlets.

"By being responsive," adds Andrew "Occupiers will also see landlords as more approachable and willing to discuss their future requirements, be they contraction or expansion. Either can present an opportunity for a more creative landlord looking to maximise their assets."

Cyril Leonard act as joint agents on site.