SBM

Client Case Study : Negotiating a new lease for a regional HQ in Manchester

SBM negotiated flexibility together with stability and cost savings totalling almost £100,000 to achieve a better-thanmarket outcome.

Our client’s property scenario

Our client occupied a 3,000 sqft office space in Salford Quays, Manchester – a hub for it’s international operations.

The lease expired in March 2020 and our client wanted to remain in the building, with the option to occupy additional space in the future if required.

SBM was instructed to explore market alternatives, ensure minimal rent uplift, deliver in-built lease flexibility, secure the option of expansion space and liaise with a challenging landlord.

“Our client’s strong preference to remain in the existing building whilst having the flexibility to acquire expansion space was accomplished.”

Property challenges

  • The existing lease was outside the Landlord and Tenant Act – creating a time pressure to secure a new lease before the existing terms expired.
  • Our client would face a dilapidations’ claim estimated at more than £50,000 if it was to vacate the property.
  • Our client’s requirement for additional expansion space on a flexible basis.
  • The attempted imposition of the landlord’s Schedule of Condition on the additional expansion space.

Property solution Market Research

Identifying alternatives and market prices.

Communication

Integration with our client’s management team – plus opening effective channels of communication with the landlord.

Creating a market

By showing a resolve to relocate, the landlord became more realistic in the proposed terms and as a result we were able to achieve a better-thanmarket outcome.

Result

  • Continued occupation – SBM negotiated a lease renewal that secured our client’s uninterrupted occupation for a further five years, aligning with their corporate strategy of remaining in the locality due to the area’s rising prevalence within the media industry.
  • Reduction in liabilities – SBM negotiated flexibility together with stability and a reduction in overall lease liabilities.
  • Significant savings – SBM negotiated cost savings totalling almost £100,000 in the following areas:
    • Achieving cumulatively 17 months’ rent free.
    • Limiting future dilapidations liability by producing a formal Schedule of Condition.

Published: 8th July 2020

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