Re-gear or relocate?

01/11/2009

In response to the UK’s highly-incentivised rental market, Watts offers a new multi-disciplinary service to its clients in the occupier sector.

Reduced construction costs, a negative trend in rental forecasts and an increase in accommodation supply, has led to landlords offering ‘market-busting’ incentives in a bid to secure renewals of existing leases or entice new occupiers into new or refurbished properties.

These include:

• Rent-free periods (typically 1-2 years)
• Capital contribution (reverse premiums)
• Rent-phasing
• Lease length and break options

Tenants have a golden opportunity to reap the long-term benefits of this market, particularly when there is increased pressure to minimise corporate overheads.

Watts’ Re-gear or Relocation Report enables tenants to understand and optimise the opportunities available. The service provided:

• Ascertains budget dilapidations liability together with potential management strategies;
• Provides a view on the financial implications of a negotiated settlement;
• Determines the likely fit-out costs for new premises which includes associated expenses such as professional/statutory and Landlord’s fees;
• Presents a budget analysis of relocation costs and offers programme advice;
• Provides a clear comparative summary to help tenants understand the merits of the options; and
• Reviews occupational density and patterns to establish if tenants are maximising the space available.

For further information about this service, please use the quick link to download our capability statement.