How negotiating on your office space is different from other negotiations

As a director / senior manager in pretty much any business these days, you’ll be used to negotiating and you may even be extremely good at it, so why would you need a professional to negotiate on your new premises?

Specialist knowledge 

If you’re in manufacturing, you’ll have a pretty good idea of the cost of raw materials, even down to the level of individual suppliers, if Fred offers you a price it’s almost certainly there or thereabouts and Karen may come in with a good offer, but doesn’t always deliver. Meanwhile Sam is often able to source something tricky that you urgently need, even if you might have to pay a bit over the odds. Sound familiar?

Similarly, a recruitment consultant will know the going commission for a particular level of hire, a furniture retailer will know how much margin he needs to make, and so on.

Property is similar in that we know how landlords and agents are likely to respond to a particular offer, we know when it’s worth a trade-off between headline rent and rent-free period and we know how much it’s reasonable for you to give away in exchange for a particular clause in your lease. Add to this the financial and legal ramifications of getting it wrong and you can start to see the benefits of pulling in an expert. 

Markets fall as well as rise

With a few decades in the London property market behind us we’ve seen boom and bust, wobbles and bubbles. Remember the .com crash and interest rates hitting 15%? We literally had clients asking for their own games room for table football and ping pong on a Friday and being happy with a side entrance and high density desking the following Monday.

While we’ve never claimed psychic powers, we do know when it’s worth holding off for a while and when it’s worth more of a stretch. Of course, plans change and we’ll work closely with your solicitor to give you longer term protection.

Why it doesn’t cost more to employ a professional

But surely all this great advice costs money? I hear you ask. Of course it does, but it’s about much more than the fee.

Our fees usually include a large element based on the savings we obtain for you, so we’re all on the same page about reducing your property costs.

We’re also in this business for the longer term, so we may well make less money, from those times when the best advice is ‘I wouldn’t do that if I were you’. Treating our client’s money as our own is how we’ve built a business based on repeat customers and referrals.

When looking for someone to help you with property, remember that it’s your net position that counts: savings minus the fee. You might find someone who will charge you £5000 less, but if they save you £50k less, you’re still £45,000 down. Those figures are not exaggerated, by the way.

Why you are better off doing your job

If you are thinking of doing a property deal yourself, you’ll be welcomed with open arms by commercial agents with properties on their books. Believe me, there’s nothing like an unrepresented occupier to make them rub their hands with glee.

Saving a big chunk of money on your property goes state to your bottom line.

It’s pretty certain that leaving the property work to the experts, while you do the job that you’re good at, is the most profitable way forward.

December 2021