Danish furniture brand BoConcept has renewed its lease at the MM2 Building on Great Ancoats Street.
TAG was first appointed by BoConcept back in 2012 when it negotiated a new 10 year lease on a prominent retail showroom premises on Great Ancoats Street in Manchester’s Northern Quarter. Ten years later and TAG’s services were called upon once again, this time to advise the franchisee on its lease renewal options.
As we all know, the physical retail sector has suffered terribly in recent years due to internet shopping and then more recently, the COVID pandemic. However, amidst the gloom there have been occasional rays of hope. Luxury designer furniture being one such example.
It seems that as people have spent more time working from home, their average spend on sofas, tables and chairs has gone up. So much so that during lockdown, sales of luxury designer furniture boomed!
So when Denmark’s best known luxury furniture brand, BoConcept, faced an imminent lease expiry in its Manchester showroom it was understandable that it wanted to scout the market for new and exciting opportunities.
TAG was appointed to undertake a comprehensive search across Greater Manchester. We looked at all manner of opportunities ranging from high streets to retail parks. Eventually we had a shortlist developed which included the existing 4,000 sq.ft. showroom on Great Ancoats.
We invited landlords to put forward their best lease terms and detailed analysis was undertaken of fit-out costs, pedestrian flows and occupation costs.
In the end, the terms offered by BoConcept’s current landlord meant relocation was difficult to justify against the risks posed by having to establish a new customer location and contend with the capital expenditure of a major retail fit-out.
A new 10 year lease was therefore agreed along with a tenant only break option at the end of the fifth year. A modest increase in the rent was agreed and the tenant’s repairing liability is limited by a Schedule of Condition.
If you would like advice on your lease renewal options, please call Martyn Markland on 0161 457 1422 or email him at mm@tenantag.co.uk.