'The pendulum has swung firmly in favour of the creditworthy tenant,' says Michael Schirnig, head of corporate real estate services at Old Mutual Properties.

Schirnig says companies with excess space or properties should study the current market and analyse where they would get the best return on investment.

'If you are operationally indifferent as to which properties to keep, look to sell or sublease the space that would garner the highest return.'

Schirnig says that companies with substantial growth projections will not find a better time to take on additional space. With subleases abounding and vacancy rates at above-average levels, landlords are quite willing to negotiate rates, he says.

'Often, tenants are able to secure better terms and more incentives, such as free rent and/or greater tenant improvement allowances.

'Although the need for additional space may not be immediate, negotiating a sweet deal for more space now could very well save money in the long run,' he says.

Business Day