Varnish with a bit of gloss!

When faced with an urgent, short term office requirement for 60-100 desks to temporarily relocate staff for between 6-9 months, the obvious choice is to look at serviced offices.

Hotel style, serviced offices have been booming since COVID due to their ease of entry and exit and relative lease flexibility.

This does come at cost however and in some circumstances at a very large cost when compared to taking a traditionally leased office.

There is no hiding from the fact that the supply of second hand offices has increased significantly since January 2020, in contrast to demand which has understandably fallen.

With disequilibrium in the market, there are therefore opportunities for companies with unusual occupier requirements or budgetary constraints within the second hand, office supply chain as tenants looking to sub let their surplus offices adapt to new market conditions.

Working on behalf of one of our long terms clients, Ashurst Real Estate acquired a short term sub lease of the 2nd floor of The Varnish Works in Bravingtons Walk, King’s Cross just before the Christmas as it could provide 60-100 desks for 9 months.

The 2nd floor of The Varnish Works is a wonderful, fully furnished 4,500 sq. ft warehouse style office that wraps around an attractive, cobble stoned courtyard occupied by Camino, King’s Cross’ favourite tapas restaurant and bar!

Whilst our client paid for this flexibility, it was considerably more economic than taking an equivalent space in a serviced office.

This was a win win for both parties.

My client’s landlord, a tenant itself has reduced its surplus office liability by almost 50% for 9 months, leading into its own lease expiry……and our client is now the temporary occupier of a very cool, contemporary office for the period of its need, in a building that is fully in line with its own corporate culture.

This particular deal structure was probably not how our client’s landlord envisioned reducing its surplus office footprint and is probably true of many landlords and tenants that are looking to dispose surplus offices either directly, or by an assignment or sub lease.

What is openly advertised may not be all that is available, as this short term lease acquisition has demonstrated.

Sometimes you have to see what’s beneath the varnish.

Ashurst Real Estate represented the acquiring sub tenant and our client’s landlord was represented by the ever pragmattic Mark Phillips of Edward Charles

If you are considering an office move, whether temporary or permanent and want to see what’s behind the gloss, contact Ashurst Real Estate. 020 7419 5117.