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Rent reduction opportunities remain beneficial

. Property Costs.

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There is still considerable interest by tenants looking to renegotiate their property costs.  Companies that occupy property with around 2 years to run before lease expiry or break date are in a particularly strong position.  A typical scenario is a company that has a reduction in headcount due to difficult trading conditions that results in spare capacity across the building.

Through a detailed discussion with the client of the current business requirements and proposed future staffing numbers, we can evaluate the most likely square footage requirements for the company.  We can then carry out a review of the likely current costs per sq metre and it is possible that a relocation to smaller space may be viable.  Alternatively a renegotiation with the existing landlord can yield lower costs as the landlord does not want empty accommodation, particularly with their liability for rates; now empty rates benefits are reduced.

Our Property team are being instructed to carry out a days appraisal for companies so they can evaluate their property costs moving forwards. Please get in touch if you need a discussion.

 

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