Property lease negotiation for a retail outlet in Portsmouth
Challenge: This client had identified his ideal location and received a weighty document from his prospective landlord setting out the terms of the lease. I was approached for advice and reported that, of the 22 proposed terms, 7 were non-contentious, but the other 15 offered opportunities for savings.
Result: We finally reached agreement on all 15: the fact that the landlord’s profit also depended on the tenant’s turnover made it a ‘win-win’ deal. The savings to the tenant amount to more than £50,000 per annum.
Acquiring an enhanced, fit for business manufacturing unit in Farnham
Challenge: This company wanted a better working environment than the cold, damp, unlined building they occupied. They had failed to find anything suitable without paying a lot more, so they called me in.
Result: I found a self-contained, insulated and heated premises with its own yard, where the rent was no more than they were currently paying. Working closely with the Managing Director, I managed the negotiation and dealt with a slightly complicated planning application on his behalf, saving him both time and money. The MD commented: “Jim understood immediately what we needed and dealt with everything whilst keeping me fully informed. It was a great weight off my mind allowing me to focus on my business, which involves a good deal of travel overseas. I always felt in control and in the picture. We are very happy with the result.”
Property acquisition in Andover for a firm of solicitors
Challenge: This firm of solicitors wanted to expand into the building adjacent to their existing premises. Although clearly able to undertake the legal aspects of the project themselves, the firm called me in to handle the commercial negotiation.
Result: In the course of the negotiation, I managed to change the rental plan from a flat rate to one that rose over the first four years, as well as securing a longer rent-free period after completion. I also agreed more favourable terms on such aspects as the liability if and when they want to move on before end of contract. In all, I saved the company more than 13% of the rental cost across the first four years. In addition to this, I made it much easier for them to pass on the liability for the property if/when they wanted to move out. Very importantly, I saved the partners countless hours of negotiation, allowing the firm to continue business as usual throughout the acquisition period.
Negotiating a 25-year lease to enable a Ringwood based aeronautical firm to expand
Challenge: This airframe designer needed to expand. They had identified an ideal property across the road from their existing site, with much-improved facilities. The offices were, however, dilapidated, and the company was taking over the last five years of a 25-year lease with a full structural obligation.
Result: I negotiated for the outgoing tenant to pay for the office’s restoration, and limited our client’s liability, eliminating the risk of costly future repairs. Through skilled negotiation, I brought monetary benefits – including an extended rent-free period – which covered fees and the cost of moving many times over. Of equal value to the client was the financial certainty that I delivered.
Negotiating & securing the best lease deal for a furniture factory located in Chichester
Challenge: This company had already identified a new unit but recognised that they did not have the experience to negotiate the best deal on the lease. They called me in to perform the negotiation, and help identify the key issues, one of which was the existence of certain structural problems.
Result: I achieved acknowledgement in the lease that the problems pre-existed and were not the tenant’s responsibility to put right. I also negotiated a significant rent-free period. The saving on rent in the first two years amounted to £75,000, in addition to the saving implicit in avoiding liability for the structural problems.
Further case studies
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