Overview
Savills Regional Office Agency Department held the 2nd in a series of client briefing presentations at Stoke Place Hotel on Friday 23rd May 2008. The ‘Client Connect’ briefings are hosted by members of the Office Agency team and their colleagues from Building Consultancy and Research. The aim of the series is to give key clients a better understanding of the current market and on specific topical issues affecting business in the Thames Valley.The main focus of the recent brief was raising rents and landlord relations. The team highlighted that in 2007 take-up in the area rose by 15.2% and there is now increasing demand for Grade A space. This is particularly apparent in key areas such as Staines and Maidenhead town centre, where there is little or no Grade A supply.
Jonathan Gardiner, Regional Offices Director, who led the briefing, also advised that with rents on the rise and decreasing tenant incentives it is important for occupiers to liaise with landlords as soon as possible in order to find long term property solutions. Although capital values have dropped significantly, rents have begun to rise by an average of 3% per annum since the end of 2007. Rent-free periods have also been diminishing, in 2007 the average rent-free period was 1.4 months per year and, so far in 2008, this has fallen to under one month per year of the lease.
The next presentation will take place this Autumn, date and venue information to follow.
If you would like to attend then please contact Sophie Wynn-Williams on 020 7409 8779 or email swynnwilliams@savills.com
Speakers
Market Update
Jon Gardiner
Director
T: +44 (0) 20 7409 8828
E: jgardiner@savills.com
"In the current market occupiers should be looking to proactively liaise with their landlords from an earlier stage. Despite the ramifications of the credit crunch being felt in some areas, we have seen little impact on occupier requirements in the South East. Indeed, whilst it has put the brakes on many speculative developments, this has only had the effect of tightening supply."
Jon Gardiner
Director
T: +44 (0) 20 7409 8828
E: jgardiner@savills.com
"In the current market occupiers should be looking to proactively liaise with their landlords from an earlier stage. Despite the ramifications of the credit crunch being felt in some areas, we have seen little impact on occupier requirements in the South East. Indeed, whilst it has put the brakes on many speculative developments, this has only had the effect of tightening supply."
Dilapidations
David Blackmore
Director
T: +44 (0) 20 7409 8901
E: dblackmore@savills.com
David spoke on the 'seven deadly sins of dilapidations' and made the audience aware that in the current climate landlords will attempt to make tenants cover their rising costs. He comments: "With markets hardening, leases shortening and construction costs rising, dilapidations have once again become a key issue in lease negotiations and dilapidations claims can easily exceed a year’s rent.
David BlackmoreDirector
T: +44 (0) 20 7409 8901
E: dblackmore@savills.com
David spoke on the 'seven deadly sins of dilapidations' and made the audience aware that in the current climate landlords will attempt to make tenants cover their rising costs. He comments: "With markets hardening, leases shortening and construction costs rising, dilapidations have once again become a key issue in lease negotiations and dilapidations claims can easily exceed a year’s rent.
Service Charge
Peter Forrester
Director
T: +44 (0) 20 7409 8948
E: pforrester@savills.com
"Service charges often include inappropriate or unnecessary expenditure in upgrading the landlord's investment, such as refurbishing communal areas or premature replacement of major plant and machinery. Tenants are also exposed to inappropriate service charge costs arising from a misunderstanding of landlord responsibilities for such matters as Energy Performance Certificates or the Disability Discrimination Act. The key point for occupiers is to take advice at an early stage and to be aware of the contractual and statutory obligations under the terms of the lease."
Peter ForresterDirector
T: +44 (0) 20 7409 8948
E: pforrester@savills.com
"Service charges often include inappropriate or unnecessary expenditure in upgrading the landlord's investment, such as refurbishing communal areas or premature replacement of major plant and machinery. Tenants are also exposed to inappropriate service charge costs arising from a misunderstanding of landlord responsibilities for such matters as Energy Performance Certificates or the Disability Discrimination Act. The key point for occupiers is to take advice at an early stage and to be aware of the contractual and statutory obligations under the terms of the lease."
GIS (Geographic Information System)
Neal Best
Research Analyst
T: +44 (0) 20 7409 5902
E: nbest@savills.com
"Issues such as staff availability and the retention of workers are key to businesses and these are determined by length of commute, public transport links and proximity to amenities, which are all important to workers and therefore influence the location of an office. Businesses are increasingly realising this and following the lead of retailers who invest heavily in mapping consumer trends."
Neal Best Research Analyst
T: +44 (0) 20 7409 5902
E: nbest@savills.com
"Issues such as staff availability and the retention of workers are key to businesses and these are determined by length of commute, public transport links and proximity to amenities, which are all important to workers and therefore influence the location of an office. Businesses are increasingly realising this and following the lead of retailers who invest heavily in mapping consumer trends."
Previous Presentation
Client Connect May 2008 (PDF - 700kb) Client Connect November 2007 (PDF - 700kb)