Regear for Large Global Corporate
Acting for a large global corporate, we realised through various business changes the property portfolio in Glasgow no longer suited the business environment. As a result, we negotiated the release of 3 leases within one building and managed the dilapidation process to a successful conclusion. In addition, it was agreed the remaining lease within the portfolio remained fit for purpose. However, as a result of the changing business environment in a post Covid world, the business were reluctant to agree a long term commitment.
The landlord was willing to agree a more flexible arrangement of 5 years, with a tenant break option after 2 years, subject to a 6 month notice period. The was considered sufficient time for new ways of working to be implemented and bed down. 12 months before the break date, it was found the environment remained challenging, such that longer term commitments were still difficult, resulting in further negotiations to move the break option to the 3rd anniversary of the lease commencement.
Whilst there were limited financial savings as a result of market conditions, release of 3 leases and good dilapidations settlements off-set these. The main objectives of reducing floor space, limiting the cost of releasing that space and agreeing a more short term and more flexible leasing arrangement were all achieved, such that the business is now “right sized” for the immediate future and still able to make sensible real estate choices and decisions.
