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Landlord launches Attractive Tenancy Deal to lure new Businesses into Offices

Commercial landlords are offering recession-busting rental agreements to lure potential occupiers into empty buildings, said a leading commercial property consultancy.    
David Jackson, Director at Sanderson Weatherall’s Teesside office, said despite indications that liquidity was creeping back into the regional property market, landlords still needed to be truly innovative to attract new tenants.     
The latest landlords to launch a striking new deal are McGinnis Group and Halegrove, developers of the £5m Halegrove Court office park at Bowesfield, near Stockton on Tees. Under their ‘try before you buy’ scheme, tenants lease the offices for a year and if they decide to settle, the landlords repay the year’s rent to go towards a purchasing deposit. The scheme could reduce the lump sum needed for a deposit by 40%. Alternatively, the tenants can continue renting the property.
Mr Jackson said: “It’s been a long time since we’ve seen such flexibility built into leasing and purchasing contracts - it’s still very much a tenant’s market.
“Economically speaking we’re not out of the woods yet and landlords have to be more creative to secure deals - and that is reflected in the innovative arrangements for Halegrove Court. Developers are keen to find ways to make things easier for purchasers and tenants.”
Mr Jackson, who is a joint leasing agent for the site with Gavin Black & Partners, added that such flexible terms met the needs of landlord and tenant alike in the current economic climate.
“The recession, combined with empty property rates, means landlords are doing all they can to secure tenants. Likewise, tenants are finding it hard to raise the funds they need to buy suitable property. In the current circumstances it’s a win-win situation for both parties.
“But such deals are not going to be around for much longer. Liquidity is already starting to flow back into the market and the window of opportunity will soon close.”
Five businesses have already moved into Halegrove Court, which opened in 2007. Eight units, all with a B-rated Environmental Performance Certificate are available, ranging in size from 640sq ft to 1,500 sq ft.
Earlier this year, in another striking tenancy deal,  the owner of a three-unit site on the Dubmire Industrial Estate in Houghton-le-Spring offered occupiers a year’s free rent in order to secure occupation and help the incoming businesses through the recession.
Sanderson Weatherall is a firm of chartered surveyors, architects and property consultants with offices throughout the North of England and London. The experienced and multidisciplinary practice provides a wide range of expertise in agency, asset management, rating and valuation, planning advice and landlord and tenant negotiations.
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Editors: for more information and interview opportunities, contact Felicity Amer or Sam Dansie on 0191 281 8833.
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