The rental property market has started looking up for the landlords. During the period of recession all office space development in the property sector was suspended, offices to let London rents had seen a reduction and landlords were compelled to offer rent free options to get tenants. Hopefully this scenario is going to change.

This hope for the landlords has been generated because of the new deal struck by fund manager Black Rock which has signed a deal for Drapers Garden at lucrative terms. This property was earlier owned by the Canary Wharf Group and Exemplar developments. The lease is for an office space of 290,000 sq ft at £49 per square foot for twenty three years. The total duration of the lease is twenty five years with first three years as rent free. Richard Kushel the Vice Chairman of Black Rock has expressed satisfaction at the deal. According to him this deal fits in with the office space needs of the company.

People dealing with this market feel that this deal consolidates the shift of benefit from the tenant to the landlord. A Cazanove broker has commented that Black Rock has negotiated for only three years free rental while Nomura has struck a deal with six yeas free rental for the London Watermark Place headquarters.

Again Macquarie an Australian investment bank had tried to get a deal for this property at a much lower rate. They were offering £43 per sq ft for 24 years along with free rental for the first four years. Songbird a subsidiary of the Wharf Group has stated that since the market is dynamic these lease terms will be reviewed in the open market every five years till the expiry of the deal

Posted by admin on Friday, February 12th, 2010 at 6:57 am.