Industrial 1700

Our work - 06/02/2020

Kirkhill, Aberdeen

We were instructed to negotiate a satisfactory surrender with the existing tenant and negotiate lease terms with a new occupier

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Overview

The property is a modern, 26,000 sq ft industrial unit with yard in a prime industrial estate adjacent to Aberdeen Airport.  We have been instructed by the landlord since 2011, increasing income by over 40% at rent reviews.  In 2019 we were instructed to negotiate a surrender and new lease. Our proactive approach combined with local market knowledge resulted in a settlement exceeding client expectations through enhanced investment value.   

The Challenge

In 2018 the existing tenant placed the unit on the market with the lease expiring 2021.  A number of parties were identified who were interested in a new, longer lease. We were instructed to negotiate a satisfactory surrender with the existing tenant and agree lease terms with a new occupier.

Our Solution 
  • Through strategic management of stakeholders and our in depth knowledge of the industrial market, terms were agreed with a new tenant, including an enhanced rent. 
  • A surrender package was also negotiated with the existing tenant to include dilapidations.
  • Our Building Consultancy team gave advice on the dilapidations and was subsequently given a project monitoring role on the in-going tenant works.

The Results

Our proactive approach ensured that the landlord incurred no voids or holding costs.  Further, an additional 20% increase in rental income was secured, enhancing investment value. The settlement exceeded client expectations. This case demonstrates our successful delivery of a large and complex project, involving multiple transactions across a number of service lines.

 

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