A Sri Lankan firm engaged in renting out office space says, the demand for office buildings in the country has been impacted as most small and medium size businesses rent residential properties to carry out their businesses.
Chairman of the York Arcade Holdings A. Rajaratnam commenting on the firms 2011/2012 annual report also says that he hopes that the relevant statutory authorities will look into this matter.
“However we are hopeful that the demand for office space will improve over the next few years” Rajaratnam added.
York Arcade Holdings during the year 2011/2012 financial year has achieved a net profit of Rs. 16.9 million by renting out office spaces.
Rajaratnam says the present level of occupancy at its office spaces remain satisfactory.
Despite this situation, the Chairman points out that the average lease rentals will have to be improved in order to meet the increased cost of electricity, water and other overheads.
The company which owns the over two decade old York Arcade building in the Colombo Fort says its properties needs a complete renovation in the near future in order to bring them inline with most of the other modern commercial buildings in the city.
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