Sean Paul, Executive Director of Spire, explains that Spire have implemented structured rental deals that are tailor made to suite each tenant. Paul says that it is important to recognise that different tenants have different cash flow scenarios and Spire creates rental agreements that fit in around these scenarios.
“For example, we offer tenants a rental free period during their lease, however, this may not necessarily be at the start of the lease, but can rather be structured around a period when the tenant knows that their cash flow will be minimal – perhaps over their annual shut down.”
Paul goes on to say that attracting new tenants to a building is key to minimise vacancies but that Spire also recognise that moving a business comes with massive additional costs – from the moving company itself, to the setting up of a new telephone lines, reinstalling the computers, new signage, shop fit-outs (if retail tenants) etc.
“Because of these costs it can be difficult for some tenants to then also have to find money for their deposit and the first month’s rent. We can then structure a deal whereby we phase in the expenses and for example, the deposit would then be due later in the rental period and not upfront. We can also look at a contribution to the fit-out costs for the premises.”