With the vacancy rate hovering just above 4% in the West End, it is becoming increasingly tighter with supply coming to an all-time low, due mainly to the fact there have been no new developments of any significance come to the West End market, how important is it for aspiring tenants to be represented? In my opinion whatever size, spec or budget you’re working to for your new office space it is vital to be represented when entering the market.
Firstly, more and more deals are being done off-market. This essentially means the property hasn’t entered the open market for unrepresented tenants to find and instead agents don’t have to go through the usual rigour of marketing the property to the usual standard. This is simply because they don’t need to, with such low stock already in the West End available coupled with a steady but growing demand for space agents are able to place tenants in building without properly bringing them to the market. An unrepresented party would not be able to come across these off-market opportunities and in such a tight market could mean they miss out on a number of viable options.
Secondly, we are finding due to the lack of supply of space and the increasing demand for space in the West End that the majority of potential tenants are have found themselves in a competitive situation to win a building. This has a huge impact on the amount of savings one can secure and could potentially mean they may have to commit to a longer lease to secure the space. Most disposal agents will usually recommend to their landlord that if out of the two bidding parties there is a represented party that they should push forward with them. This is simply down to the landlord and disposal agent believing the deal has more chance of completing with the represented party and will help both sides to move smoothly and in the right direction.
In a tight market, the above two points are in my opinion where tenant representation adds their value. Of course, there are plenty of further reasons regarding the legal process, negotiations, Heads Of Terms, managing the 3 month process and so on, but in such a tight market which we are experiencing now it is vital you are able to access every property available on the market (on and off market) and are then able to secure the space when entering into negotiations.
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.
