BACKGROUND

The client’s Head Office was located at Toowong. It had a sub-lease expiring in 11 months time and was happy to investigate alternative premises however, in the absence of a better alternative, was happy to renew its lease and remain at the building. Before Richard’s engagement the landlord had already tabled a lease proposal with a five year lease offer (no option) based on existing rental plus a 6% incentive.

ON ENGAGEMENT

Richard Pigott was engaged to negotiate the renewal.

RP TASKS

– Engagement with landlord to negotiate renewal.
– In parallel, explore Milton market to help identify credible alternative premises.
– On identification of alternative, engagement with (sub) Lessor and negotiation of terms.
– Assistance to client with cashflowing of the Stay vs Go option.
– On ID of existing premises as preferred option, engagement with landlord and finalise negotiation.

PROJECT OUTCOMES

– A new 6 year + 6 year lease.
– Increase of incentive to 19%, removal of make good and redecoration obligations, landlord improvements to client kitchen. Improvement in other terms (e.g. rent review structures).
– Overall value-add to client of approximately $850,000.