Leasing and Letting - L2

Question 1

What is a cooling off period?

Answer 1

Gives the client 14 days to change their mind on the instruction

Question 2

(Gym City of London) What was the condition of the property?

Answer 2

Fully fitted gym studio
Good condition
HVAC in place

Question 3

(Gym City of London) If any of the comps were subject to rent free periods, how would you devalue them?

Answer 3

I would devalue on a net effective basis

Question 4

(Gym City of London) How do you research comparable evidence?

Answer 4

Use data from CoStar/EGI and talking with local agents.

Question 5

(City of London) Other than market conditions, what can impact market rents?

Answer 5

Location
Proximity to public transport
Specification
Floor to ceiling height for gyms

Question 6

(City of London) What platforms do you use for marketing?

Answer 6

PIPnet
CoStar
Firm’s website

Question 7

What is included in HOTs?

Answer 7

Without Prejudice and Subject to Contract
Landlord and Tenant Details
Landlord and Tenant solicitors details
Demise
Lease length
Inside/outside the Act
Rent
Incentives
Service charge
Timescale

Question 8

(Acquisition Waterloo) Why did you ensure to understand their requirements?

Answer 8

To understand their strategy, objectives and financials.

Question 9

(Acquisition Waterloo) What target locations did they have?

Answer 9

City of London with high office density and good public transport

Question 10

(Acquisition Waterloo) Talk me through the London gym market?

Answer 10

Demand from gym operators remains strong especially in Zone 1 and Zone 2 where people both live and work. This has been magnified by covid and the hybrid working model, adopted by many in London.

Question 11

(Acquisition Waterloo) Why was high office density important to your client?

Answer 11

For higher levels of footfall.

Question 12

(Acquisition Waterloo) What terms did you agree?

Answer 12

5-year lease.
Outside the Act.
6 months’ rent free.
£15 psf

Question 13

What details do you include in marketing particulars?

Answer 13

Property Address
Size
Quoting rent
Rates
Photographs
Description
Lease terms available

Question 14

(Gym City of London) What tools did you use to negotiate?

Answer 14

Win-win outcome for both parties
Create leverage
Timing as an advantage as landlord’s want to fill voids asap
Have alternative replacements in case negotiators fall out of bed