BACKGROUND

– The client occupies 300.00 sqm in Felix Street, Brisbane
– It had a lease expiring in 11 months and was open to a renewal but also wanted to investigate the Milton market as a possible alternative location for new premises.

ON ENGAGEMENT

Richard Pigott was engaged to assist with the process of market research, identifying and short listing options and ultimately to assist with any lease negotiations.

RP TASKS

– Define premises requirements and circulate a Tenancy Brief to the Milton market
– Review submitted Milton properties & coordinate inspections of suitable options with client
– Identify preferred Milton option, invite lease proposal and negotiate best terms
– Engage with existing landlord and negotiate best lease terms
– Prepare “Stay or Go” Analysis comparing two scenarios in liaison with client
– Identify best option with client and finalise lease negotiation

PROJECT OUTCOMES

– A new 3 + 3 year lease at existing premises
– A reduction in its existing gross rental costs of 20% (from $619/sqmpa to $530/sqmpa) PLUS an additional 30% incentive (equating to a new “Effective” Rent of $370/sqmpa equating to a 40% reduction overall).
– Improvement in other elements of lease proposal including Outgoings base years, make good and Bank Guarantee clauses plus inclusion of “First Rights” to the adjoining space (should it become vacant).