Summary
Our client was a large national company with its Head Office located in Ultimo. They had a lease expiring in 6 months time and were happy to investigate alternative premises. In the absence of a better alternative, they were happy to renew their lease and remain at the building. Before our engagement, the landlord had already tabled a lease proposal offering a five year lease term (no option) based on an increased rental plus a 19% incentive.
- Engagement with landlord to negotiate renewal.
- In parallel, explore and identify credible alternative premises.
- Assistance to client with cash flowing of the Stay vs. Go option.
- Investigate additional parking within the building.
- Confirmation from client that existing premises is the preferred option, engagement with landlord and finalise negotiation.
- Instruction from client was that they didn’t want to go to Valuer determination at the expiry of the lease.
Key Points
- New 5 year lease + with 5 year option agreed.
- Increase of incentive to 25%, additional 4 car spaces, landlord improvements to client offices and flooring. Improvement in other terms (e.g. rent review structures).