17/05/2011
In today’s property market the tenant is truly ‘king’! Now is an excellent time for companies thinking of relocating.
With rent free incentives reaching 20 months on some five year leases and landlords accepting the need for flexibility, leases are being drafted to suit each tenant’s specific commercial needs. Rent free periods are being taken in the traditional form at the start or spread over the term with stepped rentals also common.
Occupiers approaching the end of their lease or with an upcoming break option have the opportunity to renegotiate favourable terms on a new lease. With landlords willing to listen to proposals, now is an excellent time for companies thinking of relocating.
Despite the obvious financial benefits, many companies find that the complexity of commercial property acquisition interferes with the day to day running of their business. Very few executives have the time to trawl through the plethora of available commercial properties, create short lists and arrange viewings. Companies that instruct surveyors to act on their behalf are able to remain focused on day-to-day operations with the knowledge that they have experts working in their best interest.
Once a short list of properties have been identified, the time consuming nature of property negotiations provides further distraction to a business. Allowing a commercial property specialist to negotiate on behalf of the business, ensures that all bases are covered including rent, lease length, options to break, alienation rights, ability to alter premises, repairing obligation, financial incentives, warranties and conditions to a transaction in order to fully protect a client’s position and mitigate future liability. In addition, ensuring that all measurements have been taken correctly and advising on further issues such as rates liability and planning applications, can prevent costly mistakes. With regular updates on the negotiations and a financial analysis of each option, decisions can be easily made. This allows occupiers to take full advantage of the incentives currently available in the market without committing full time to the project.
Vail Williams’ offices have an in-depth local market knowledge and awareness of deals recently done, and so can secure the bests deal for each client. As a result the move is often more affordable than originally expected.
Vail Williams has been working on a number of acquisitions for high profile clients including KPMG, Raglan Housing Association, Apollo Motor Group and Clarity Commerce Solutions PLC, all of whom are seeking to take advantage of current opportunities in the market.
There is no doubt that the market is still sluggish, but all the signs indicate that now is the right time to move. While the property market boomed, landlords called the shots, but at this moment, occupiers have the upper hand and need to consider whether the time is right for them now. This could be the perfect time!
