RLB look beyond exchange

Global property and construction practice RLB, have instructed TAG to advise on a potential relocation from Salford Quays to Manchester City Centre.

TAG have been re-instructed by RLB’s Manchester office following the successful re-negotiation of its lease back in 2013.

RLB are growing fast and are close to running out of space at Exchange Quay where they lease around 5,000 sq.ft.

TAG will be undertaking a space audit before embarking on a series of property searches in Manchester City Centre and elsewhere.

The Wright space

Drugs analysis company Wright Dose were represented by TAG when they acquired space in Charter House in Altrincham back in 2012. With a break option due in June 2017, TAG recommended that Wright Dose should explore its options including relocation.

 TAG undertook a formal property search on behalf of Wright Dose in October 2016. This revealed a number of relocation opportunities. It also acted as a catalyst for discussions with Wright Dose’s existing landlord who was keen to retain them as a tenant.

The result of the forward planning exercise was that a new lease was agreed on much needed expansion space adjacent to Wright Dose’s existing suites within Charter House. An appropriate financial incentive was also agreed which meant relocation was no longer financially viable.

This case demonstrates the value of a break option even when relocation seems the only option. By demonstrating to a landlord that you are serious about moving, you can often unlock opportunities that might otherwise pass you by. In this case, the landlord had to move an existing tenant to create the necessary expansion space. This might not have happened if Wright Dose adopted a more passive stance to their break option.

IPMS one year on

A year ago, the Royal Institution of Chartered Surveyors and its partners introduced a new measurement system for office buildings called ‘IPMS’. We believed IPMS was flawed and carried out research to prove it. We then travelled around the UK explaining our findings to major firms of lawyers and our clients. So what if any effect has all this had on the adoption of IPMS?

The RICS made it a mandatory requirement for its members to introduce IPMS. To our immense relief, only a very small number of firms appear to be adopting the new measurement system. There is still work to be done but common sense seems to be prevailing right now particularly, in Manchester where the vast majority of agents and landlords agree that the system is misleading to consumers (i.e. office tenants).

Our criticism of IPMS is that it allows less scrupulous landlords and their agents to exaggerate the usable floor area of an office. Very few occupiers or indeed investors have ever measured an office building, so they simply don’t know whether the area quoted to them is correct or not. As the majority of tenants do not retain a property professional to negotiate their lease, a huge number of consumers risk paying too much rent.

To put some scale to the problem, if every office had its floor area quoted on an IPMS basis, landlord could charge tenants an average of 7.5% more rent than they currently pay. This adds up to around £70 million a year in extra rent across the UK office market.

Our advice is simple, before signing a lease check the floor area and do not agree to pay rent on the basis of an IPMS measurement. If you are in any doubt, please call Martyn Markland on 0161 457 1422 or e-mail him at mm@tenantag.co.uk.

SCP Transport are on the move

Manchester based transport planning consultants SCP has asked TAG to help it identify and acquire a new home for its expanding Leeds office.

SCP’s Leeds office is currently based in the heart of the trendy Calls district. This is where you will find creative types such as architects and marketing agencies.

It is clear that SCP’s staff love the location and the character of their office which overlooks the River Aire. However, the building was recently sold for conversion to residential use so they are being forced to move out by June 2017.

This situation is becoming an increasingly common in major cities where the value of secondary offices have often failed to keep pace with rises in residential values. The relaxation of planning laws means building owners can now convert from one use to another very easily even if their office tenants hold a protected tenancy.

We will be exploring a full range of options for SCP which will include more traditional purpose built office accommodation within the Central Business District. We might not end up with something that has as pleasant a view but hopefully, it will have other benefits that staff will value just as much.