67/69 Lincoln’s Inn Fields, WC2
QMUL occupied this building under six separate leases, five of which were subject to an upwards only rent review with the remaining lease due to expire, all at the same time. The events followed a period of sustained growth in the central London office market.
Daniel Watney were instructed by QMUL to negotiate these matters on their behalf with a view to minimising the uplift in the passing rents together with securing a term on the lease renewal that would be co-terminus with the remaining leases
Our Role
We carried out a detailed inspection & measurement of the premises and considered all aspects that may impact on rental value including the Mechanical and Electrical installations;
Provided a detailed report to the client summarising the lease terms, rent review provisions, the hypothetical scenario that is to be valued, a detailed market analysis including comparable transactions, advice on negotiating tactics and an estimated rental value and budget rent;
Following receipt of the landlord’s combined quoting rent of £1,758,000 pax we entered detailed negotiations with the landlord’s agent.
Result
Daniel Watney were successful in negotiating substantial savings in excess of £2.5 million over the next five years together with negotiating the term of the new lease to be co-terminus with the other five leases.
This represented a saving of close to 30% from the landlord’s initial proposals. These savings were secured as a result of Daniel Watney’s extensive knowledge of the local office market combined with our technical expertise gained through a combined 35 years’ experience dealing with lease advisory matters.
Daniel Watney have subsequently been instructed to negotiate a re-gear of the leases to include the upcoming rent reviews, removal of break options and extension of the leases.
