Negotiating a lease

[quarterdon]

Hi,

Looking at getting bigger offices and wondering what everyone's experience is in negotiating a lower rate based on the available office we currently see in Britain.

I have a found 4 storey building, each story around 3200sq/f.

Every story is empty, and from what I can tell they all have been for a number of years. Many other offices exist unoccupied and it seems that around 50% of office space is unused in the town.

The asking price is around £8 per sq/f based on taking one floor.

To what degree do you think it could be taken as low as.

Thanks,
Don

 

[TotallySport]

be cheakie, the worst they can say is no. if the whole building is empty, what sort of facilities do they provide? to they have someone in the loby, in the building to open up etc. and how much will the service charge be?

Good Luck

 

[quarterdon]

Dont worry, I intend on been very cheeky.

I am just curious what soft of negotiation is normal on such buildings.

I am thinking of going in at 50% of asking price.

 

[TotallySport]

i would offer £4 per square foot and first 12 months free on a 5 year lease, with a break option at 3 years.

Depending on your business and plans

 

[quarterdon]

Sounds like a good deal to me if they accept it.

 

[TotallySport]

lol, they won't but thats what I would offer, i'd expect to get around £6 per sq ft and 6 months free of 12 months half price, depends on your situation on the break clause but worth putting on in if you can get it. If you want a long lease ask for more, if you want a shorter lease expect alot less.