Challenge: With a large office lease expiration due in 2010, the U.S. partners of K&L Gates appointed Colliers to advise them on a relocation strategy and subsequently to seek a new London office of more than 100,000 square feet.
Strategy: Working closely with Lehman-Smith McLeish, the global real estate and architectural advisors to K&L Gates, and with the London-based partner responsible for real estate, a thorough review of market opportunities was delivered. Managing the liabilities outstanding in the existing building at 110 Cannon Street, which included an outstanding rent review and onerous dilapidations responsibilities, was one key requisite. The other was to secure a “rock star” building that K&L Gates could tailor to their needs during the fitout.
Result: Ultimately, terms were agreed upon with Land Securities, the landlords of 110 Cannon Street. This mitigated the risk of a move and enabled the dilapidations and rent review to be ignored. Colliers also converted some of the extensive rent-free period into a contribution for capital works.