Our Q2 2022 Central London office rent snapshot shows average rent for quality office space remains pretty constant.
Many landlords continue to hold out for high headline rents in order to satisfy banks and shareholders. Often in order to achieve this, however, they are suffering long voids and giving away generous rent free periods.
Office sub-lets present exciting deals
We are finding there are often much more exciting deals to do with tenants with surplus offices to dispose of. In contrast to landlords, their target is to offload unnecessary cost exposure as quickly as possible. We came across a great example of this with a 7000 ft2 office in Grays Inn Rd, brilliantly located between Kings Cross & Holborn stations.
Tenants looking to offload unnecessary cost exposure as quickly as possible won’t be holding out for high rents.
The office had a stylish tenant fit out. A large fully furnished open plan space was available together with a spacious kitchen, conference / meeting rooms and some beautifully appointed private offices. The tenant had also installed additional W/Cs and showers for their exclusive use.
To cut a long story short, we negotiated for our clients to take the whole caboodle for 3 years, but to pay the equivalent of only 18 months rent!
The tenant only had 3 years left on their lease, so they couldn’t afford to wait around for the perfect rental offer. This represented a great opportunity for a fast-growing legal client who were looking for flexible office space. To cut a long story short, we negotiated for our clients to take the whole caboodle for 3 years, but to pay the equivalent of only 18 months rent!
If you’re interested in acquiring an office with the benefit of an existing tenant’s fit out, why not get in touch?
Unsure about how to calculate how much office space you need? If you follow the rules, it’s easy to calculate the correct size requirements.Read More
Ian has advised Central London office occupiers for over 20 years - fighting their corner and making sure they get a great office on the best terms. He has a diverse client following, often working with creative companies.