Explore lease opportunities
Have you engaged with your landlord and explored options to improve cash flow?
- Do you have a comprehensive understanding of all your lease commitments and cashflow issues?
- Do you have an understanding of the landlord’s own challenges?
- Have you engaged with your landlord to identify opportunities to achieve savings both in the short term and medium term?
- Have you considered re-gear, rent-frees and deferments to overcome business occupation issues?
- Have you factored lease break and exit information into a review of your ‘rightsizing’ footprint strategy (including exit options for individual buildings e.g. part-exit)?
- Have you considered rent and interim rent valuation issues for lease renewals and rent reviews post COVID-19?
Lease flexibility can on average cost an additional 5%-10% per annum on the rent. Generally 75% of lease breaks are not activated and only 15% of expiries are not renewed.
Rent savings of 10-20% are possible on lease events.
Targeting lease breaks and expiries could achieve material rental savings. It may be out of business necessity to open these discussions, where there is likely to be a period of uncertainty impacting on the occupancy levels post COVID-19.
We can use our experience of lease interpretation and combine this with our extensive access to property market intelligence to negotiate with landlords and achieve higher than average savings and mitigate other lease costs. More detailed analysis of lease provisions and options may identify further opportunities to realise savings.
For more information please contact: