The majority of London businesses could save as much as 24 per cent on rent, claims a leading commercial property agent.
DeVono says many businesses end up overpaying because they don’t know where savings could be made.
Adam Landau, a director at the occupier only advisors, says tenants could be saving nearly a quarter of their annual London rental costs if they were represented exclusively by an agent.
“Commercial property agents generally act on behalf of landlords and therefore have the landlords’ best interests at heart – and this by definition means they will always try and drive values up,” he explained.
“As well as rent, there are several other areas where savings can be made, so you need excellent knowledge of the London commercial property market in order to negotiate the lowest possible costs,” says Landau.
“And due to our unique occupier-friendly focus we provide the strongest no conflict service above and beyond other property companies whose main responsibilities have always been and will continue to be for landlords.”
Since its 2003 launch DeVono says it has clocked up total savings for its clients of £16.4m, with one client clawing back £2.4m on the cost of its office space.
“London is known as having the most expensive office rents in the world, so it is vital for businesses to work with a tenant agent who has the expertise to get them the best possible outcome on property costs,” added Landau.
According to DeVono’s quarterly London Office Market Rent Guide, rents for top quality Mayfair offices have now reached £125.00 per sq ft with lower quality, economical offices in Mayfair costing an average £50 per sq ft.
The areas close to Canary Wharf have the cheapest office space in the capital, starting at just £12.50 per sq. ft.
The agent — which holds the record for doing the most central London office space deals within the last six years — represents companies looking to relocate into and around central London and The City. Its client list includes Manchester United Football Club, Toshiba, and the energy distributor E.On.
More than a quarter of prospective tenants, claims DeVono, say they cannot find adequate offices in central London, forcing an eastward shift in the city’s commercial area.
Fashion and technology companies, in particular, are moving to cheaper premises around the edge of the square mile. There are also a large number of new office developments being planned for the capital’s eastern docklands.
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