BESpoke, the managed flexible workspace provider, today announces its first transactions on behalf of corporate occupiers and establishes a new benchmark in the rapidly growing sector.
Launched by BE Offices under the leadership of industry veteran Jonathan Weinbrenn, BESpoke has agreed to lease 11,700 sq ft in Euston House, Eversholt Street, London NW1, 6,800 sq ft in Marshalsea House in Marshalsea Road, SE1 and will also manage space with BE’s recently acquired 36,000 sq ft Somerset House, Temple Street, Birmingham.
The Euston House space is occupied by a major rail infrastructure business with a lease expiring imminently. The company faced the upheaval of finding alternative accommodation for only 12 months as well as a substantial dilapidations bill when vacating the space.
In what is believed to be an industry first, BESpoke has agreed terms with the landlord, Laxton Properties, for a conventional FRI lease on the Euston House offices until the latter part of 2022.
What makes this deal unique, believes Weinbrenn, is that BESpoke has enabled the occupier to remain in the building, reduce its occupied space by approximately half, avoid paying an onerous dilapidations bill, agree a 12-month licence that includes any necessary capital expenditure on improvements, avoid upheaval costs and it still has the flexibility to further reduce or expand its space needs at any time.
BESpoke will manage the entire space and seek another corporate occupier for the remaining offices once they have been refreshed to the appropriate standard.
Commented BESpoke Managing Director Jonathan Weinbrenn: “We are creating the most customer centric solutions in the market by providing the occupier with guaranteed flex to expand on the same floor, or within the same building.
“At BESpoke we are putting more skin in the game by taking on more space than the anchor occupier needs – and for a longer term – giving the client ultimate flexibility to grow and extend its occupation, if needed.
“All of this is supported by a business model enabling the occupier to avoid capital expenditure on fit out and furniture as well as escaping future dilapidations or reinstatement costs. A real win-win for the corporate occupier who can also use the short-term licence agreements to mitigate onerous lease liabilities normally taken through the P & L account under new accounting regulations.”
Weinbrenn believes this is a unique market proposition as it provides the ultimate in both flexibility and efficiency. It offers total cost certainty while at the same time enabling clients to react almost immediately to expansion or contraction.
In the case of Euston House, the surplus offices will be taken on by a separate corporate occupier while in Birmingham the building will be shared with both Headspace and BE’s pro-working offer.
Weinbrenn expects a number of similar transactions to be concluded over the next few months which are likely to be spread throughout the UK.