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Rent free is the key to savings

21st July 2014

Rent free is the key to savings

Morgan Pryce deal with a many companies who are moving into taking a lease for the first time. Often they have come out of a serviced office where they have had one monthly cost which encompasses all the costs of occupying office.

When taking a lease, there are many other costs to consider such as business rates, service charge, insurance etc. Part of the service provided by Morgan Pryce, we educate clients on all parts of the leased office market so that they can be comfortable in making a decision on securing the office of their choice. After all, most leases are a minimum of 5 years which totals up to a huge cost of any business. Therefore, having professional advice so that you understand exactly what you are committing to is very important. 

Tenants who have not taken a lease before often do not understand where and what is negotiable. A tenant without representation will often be seen coming by landlord agents as they can manipulate a deal which is very favourable for their client. 

Where Morgan Pryce can really add value to the process of taking a lease is through the initial negotiation process. Knowing what is negotiable and what isn’t it key. However, it is important to understand the drivers of the landlord that you are negotiating with. For example, an institutional landlord is going to be concerned with keeping the headline rent high as this has a direct impact on the investment value of their property portfolio and also sets a precedent in the building for future lettings that may be done. However, a smaller private landlord may be more concerned with cash flow not be willing to offer a long rent free period but may be more negotiable on the rent. 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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