We have been working with Telereal Trillium, one of the largest property companies in the UK and a leader in property outsourcing and investment, for over 10 years, delivering a range of services across the business.
In one of our most recent projects, we negotiated a lease renewal for Job Centre Plus in the centre of Northampton.
Costs savings key for Job Centre Plus
Job Centre Plus had occupied the four storey building - comprising 27,000 sq ft - since its construction in 1985.
The lease was due to expire and they instructed us to negotiate a renewal with the most favourable terms possible.
Acting for a Government department, the key focus for the Job Centre Plus was to minimise costs through the best possible financial deal, taking advantage of their strong covenant strength.
Appraisal of property revealed dated aspects
The property was in reasonable condition, however many of the improvements which had been made since 1985 including a suspended ceiling, category II lighting, and air conditioning, were tenant improvements and therefore disregarded for the purpose of the lease renewal.
The building was dated and inferior to modern new build properties available and had a low car park ratio.
Shift in demand impacts town centre rents
With modern out of town developments attracting occupiers out of the town centre, rents and demand have reduced for older properties in the town centre, particularly those with limited parking. This was a key factor in our negotiations for Job Centre Plus.
Substantial savings secured
We reduced the annual rent by 35%, down from £375,000 to £243,576, along with a revised lease term of seven years, in line with Job Centre Plus’ requirements.
We also secured a capital contribution of £500,000 on commencement of the new lease – the equivalent to two years rent free.