Time is money: Tenant Rep Team secures 1-year rent-free period for Clckwrk - Colliers International | London

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  1. September 2018

  2. Time is money: Tenant Rep Team secures 1-year rent-free period for Clckwrk

    3 September 2018
    One of the big sells of the Colliers Representation Team is to secure the best possible space on the best possible terms for occupiers using our service. When businesses are paying for us to find them a space along with all the other outgoings involved with relocating their operation or starting out from scratch, we need to make it worth their while.
    A remarkable achievement for us recently was in the acquisition of new office space for Clckwrk, a cloud computing professional and managed service company, looking to relocate to a conventional office in the City Fringe. Alongside seeking an office for 25-30 people, Clckwrk was looking to reduce its operating costs at the same time as coming out of a serviced office environment and into its own private space. The aim was to move within their 3-month notice period to a more cost-effective office as soon as possible.

    With a steady growth plan, Clckwrk no longer required rolling flexible breaks as offered by The Office Group at Greville Street but they were also keen to avoid a five-year tie-in on a traditional lease so required a 3 year break.

    Our searches looked at CAT A and CAT B refurbishments alongside fully fitted floors. We advised Clckwrk on the costs of fitting out their own space which is something they were considering but had no experience of. With the upfront costs of fitting out an office – likely in the region of £100,000 for the amount of space they required – it became clear that such an outlay was really not in their mindset and so the hunt focused down on fitted space within their budget and flexilbility range.

    This process unearthed a second-hand fitted floor in Lector Court, in Farringdon. With an open plan floor plate of 2,420 sq ft, the office was the perfect size to house the Clckwrk team. It also hit the budget financially as Clckwrk could inherit the previous tenants fit out which suited their working environment with 2 meeting rooms, a kitchen and open plan desks.

    We agreed a five year lease with the landlord and a tenant break clause at three years. We limited the dilapidations obligation via a schedule of condition, agreed a service charge cap and despite the space already being fitted, negotiated a 12-month rent-free period over the lease term. 



    The Author

    Olivia Blundell
    +44 20 7344 6570
    +44 7860180320
    Olivia.Blundell@colliers.com