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Understanding a Landlord when securing office space in London

30th August 2012

Understanding a Landlord when securing office space in London

Office space in London can be difficult to acquire at the best of times, but not understanding the motivations of landlords can significantly reduce the chances of successfully acquiring an office space.  This is the opinion of Morgan Pryce, the London based tenant acquisition agent who specialise in acquiring London office space for clients

“One of the things we find tenants really don’t understand is the landlord mentality when it comes to rents” says David Perrins, Managing Director at Morgan Pryce.  “They see a building that has been empty for a while and they assume that a great deal can be had because a landlord must be desperate.  This unfortunately is rarely the case with the direct link between rental values and capital valuations being the principal reason.”

“Tenants need to understand that the freehold value of a property is based on the achievable rental values for that building” confirms Fraser Williams, Managing Director of Barclay Fox.  “If the Landlord drops the rental value he is prepared to accept, it can have a drastic effect on the value of the building and any subsequent covenant triggers that may be in place with investors.”

The truth is that it is rare to get something for nothing when looking for a London office space and the best deal is usually one that is beneficial for both parties.

Morgan Pryce is an independent specialist London commercial property agent, with offices in Oxford Circus.

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