Lease Restructure

With the ever increasing incidence of break options and shorter leases, we demonstrate an in depth understanding of where value can be released for landlords and tenants.  Using our expert market knowledge we alert clients to the opportunities.  Varying lease terms can be a win-win situation for both parties.  Securing a rental concession and enhancing capital value are not mutually exclusive concepts.

Case Study

Job Centre Premises, Chesterfield and London NW6

Acting on behalf of landlord clients, we were approached by agents for the Job Centre seeking to renegotiate the terms of their leases in advance of forthcoming tenant break options.

These two cases highlight how each case must be treated individually with a careful eye on the client’s needs and their attitude to risk.  Our advice was tailored accordingly.

One client could not afford to take the risk of the tenant breaking its lease and negotiations were handled accordingly.  Due to our negotiations, the concession was reduced significantly from the tenant’s original proposal and the impact was reduced by phasing the rent reduction.

The other client had the freedom to take a completely different approach to risk partly because the break date was over 12 months away.  Following our assessment of the tenant’s case our advice was to reject the tenant’s approach.  We were fully vindicated when the tenant advised that it had no intention of breaking its lease.