Construction Firm Secures Market Beating Rent Free Period on Renewal

DE Group
3,700 sq ft – Burdett House, 15-16 Buckingham Street, WC2

We were engaged by a large construction firm who were approaching their lease expiry.
The firm had engaged in preliminary lease renewal negotiations with their Landlord but the terms
offered by the Landlord were not competitive. Further, the Landlord was using an outstanding rent
review from 5 years prior, with the threat of a substantial backdated rent increase, as leverage in the
negotiations.

Hallett worked with the client to develop a robust strategy that strengthened the bargaining position,
explored the options for relocating out of the building and ensured a highly competitive renewal
package if the decision was taken to stay put. Negotiations were entered into for three shortlisted
options and cost appraisals were carried out to compare the total costs and also to use as a
negotiation counter.

It became clear that the best option for the client was to renew the lease as long as competitive terms
could be agreed. By researching historic comparable evidence and using Hallett’s extensive rent review experience, we concluded that the outstanding rent review did not warrant an increase. Once this was established, we negotiated a highly competitive renewal package for the client that included a market beating rent free period.    

Cost Benefit 

Hallett negotiated a lease renewal package that included:

A market beating 14 month rent free period over a 5 year term.

Absolving the clients outstanding rent review, at nil increase.

Agreeing that the client’s dilapidations liability would be significantly reduced in the new lease.

Total additional savings (over and above the initial incentives offered by the Landlord), that
equated in value to over c. £180,000.

Robert Pincham – Managing Director, The DE Group
Hallett devised a comprehensive strategy that presented us with excellent options and gave us the
upper hand in negotiating a great deal on our behalf. We could not have done this with Hallett’s
Director level expertise.