Accounting firms like KPMG are cutting corners by attempting to reduce their expenditure on the commercial real estate space. The sector is currently struggling to cope with the global economic meltdown effects. The companies are discontinuing their existing long-term lease contracts and opting for new properties that are offering them a good bargain.

KPMG is currently on the lookout for an office space of about eighty thousand sq ft, big enough to house an additional hundred employees than its existing space in a building at St. James’s Square. Although its current rent agreement is valid till 2015, the company is planning to avail the exit clause of the contract and back out of the deal.

According to property advisors, these strategic decisions are being taken by several firms who are bleeding from having to shell out huge rentals for properties signed during the market hay days. With declining property values, developers are aggressively marketing their upcoming properties by offering low office rental rates and value desk space rental, which are being lapped up by firms like KPMG – click for info on desk space to rent.

Market is also abuzz with speculation that Hill Dickinson, a leading provider of legal services is planning to pull out from a lease contract that is not expiring for more than a decade to come. However, whether these conjectures will actually transpire into real decisions are yet to be confirmed as companies like PWC have put such plans on the back burner.

All these moves are a part of the over-all cost-saving drives undertaken by the companies to stay afloat in these tough times. KPMG had earlier this year, downsized staff by 200 employees and had implemented a four-day working week.

This entry was posted on Friday, July 3rd, 2009 at 8:08 am and is filed under Biz Stuff, Commerce Opportunities, Corporate Evangelism. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.