A warning has been issued by the British Property Federation that few leases might neglect liquidation practices with reference to the real estate business, in view of some company’s attempts to reconsider leases when the economy has started to progress again.

Blue chip land owning companies like British Land and Land Securities are represented by the BPF, which has issued its displeasure of the trends in practice after it was claimed by new reports that REGUS had put leases on not so popular locals into administration in lieu of contracts not getting constructed in a better manner.

Liz Peace, Chief executive of BPF spoke that it was getting more and more difficult for landlords when it came to helping out the occupiers, because it becomes an expense borne by the shareholders, considering the cost involved in holding an empty office rental space.

Peace also mentioned that the irritating problem of the REGUS situation was that despite forcing business to cut margins, they were presently running profitable businesses and were strong in terms of cash. REGUS offers office spaces, virtual office spaces and meeting rooms to more than a hundred of FTSE land owners in a large number of key business districts in the United Kingdom.

A REGUS spokeswoman denied commenting on the deals with landlords or naming the probable number of units that might be dropped. However, she mentioned that currently the company was working to attain further growth. On 31st October 2009, a net cash position of £221.9 million was reported by the company, opposed to just £159.9 million in 2008. This was a clear indication that the company had successfully continued to generate more cash.

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