CDS CO-OPERATIVES
CLIENT BRIEF In 2014 we were asked by our client, CDS Co-Operatives, to settle a rent review at their premises on Marshalsea Road for the lowest possible rent in their…
CLIENT BRIEF
In 2014 we were asked by our client, CDS Co-Operatives, to settle a rent review at their premises on Marshalsea Road for the lowest possible rent in their locality. We found ourselves faced with a rent review in a rising market and warned CDS to expect and budget for a significant increase in rent. Our client faced a double-hit due, not only to the rising market, but also because their current rent was set at £20psf, which is extremely low against the current market.
OUR PROFESSIONAL APPROACH
CDS were unhappy in their current property as it is no longer suited to their revised operations and had expressed the desire to change the working culture, off the back of a change in client management. The priority was to relocate to more suitable space by the end of 2016.
Through our knowledge of the Landlord, and the local property market conditions, ask-re recognised that their premises were prime for redevelopment and that the Landlord may want to reclaim possession before the 2016 lease expiry date.
It was because of this knowledge we were able to approach the landlord positively and negotiate a zero increase on the rent review, retaining the incredibly low rent in a risen and rapidly rising market.
THE SUCCESS STORY
On top of that remarkable success, we also agreed zero dilapidations liabilities at lease end.
A rolling break with 5 months’ notice, giving the client flexibility and control around the termination date, was added to the deal as well as securing a capital contribution of £125,000 from the landlord if the lease were to be terminated early by CDS.****
We did such a great job and achieved such an amazing deal, CDS immediately gave us instructions to proceed with their relocation at the end of 2016, which is now on course for a very satisfactory outcome next summer.