LEASE RE-GEARS IN GLASGOW
Cushman & Wakefield was instructed on behalf of the Landlord, Walker Group to re-negotiate the existing leases within the building which were due to expire within a 2 year period. The total potential vacant accommodation totalled 24,000 sq ft across 4 floors of Grade B office accommodation within Glasgow City Centre. The timing of any break options within the lease is critical as the Landlord wish to retain the ability to potentially redevelop the site within a 5-10 year period.
Cushman & Wakefield provided advice to Walker Group in relation to the existing tenant's use of the space, accommodation requirements and timeframe for re-negotiation in addition to current market rental value.
Consideration was given to other properties within Glasgow City Centre which may house the Tenants should they decide to relocate along with consideration of the rental, rates, service charge and specification of these potential competing suites.
Negotiations were undertaken between the Tenants and their advisers in respect of the lease terms but also the Landlord's works in terms of communal area refurbishment which could be carried out.
The lease extension of the 2nd and 3rd Floors (12,430 sq ft ) to Invensys Rail and the 4th and 5th Floors to Allied International Credit (12,630 sq ft). Of greater significance is the fact that the headline rental for the building was increased at a difficult time in the Glasgow market.
Cushman & Wakefield satisfied all of Walker Group's requirements.