|Issue||Business ‘rightsizing’ and rationalisation of leases by effective marketing|
|Project Manager||Stephen Head|
0118 955 7089
Matching occupier needs produces positive outcomes for both landlord and tenants
Cohort Plc is an independent technology group specialising in the defence and related market sectors. The company occupied 8,764 sq ft. of prime office space at Two Waterside Drive (2WD) on the Arlington Business Park just off the M4 at Junction 12. Due to changes in business structure and working practices, Cohort wanted to reduce its occupational footprint. In order to achieve this, they also needed to dispose of their current lease which expired in June 2025 but incorporated a break in 2020 which they would have operated. Following a productive marketing campaign by Hicks Baker, Clarify Solutions Selling expressed interest in taking over their suite at 2WD.
Cohort was unwilling to assign the lease as this would have left the company with residual liabilities under privity of contract beyond 2020. The offer of a sub-lease until June 2020 would have left Clarify with no guarantees beyond the 2020 break date. They were unable to sign off a move without assurances and greater certainty in the longer term.
An opportunity presented itself for Cohort to move within the Waterside Drive complex. A smaller suite of 3,453 sq ft. was available in the building opposite, One Waterside Drive (OWD). Following a complex tripartite negotiation Cohort signed a new lease on the 3,453 sq ft. suite, at the same time surrendering their lease on 2WD. In a simultaneous transaction Clarify took a new 15-year lease from the landlord on the suite at 2WD.
Careful transaction management by Hicks Baker brought these complex negotiations to a successful conclusion, ensuring that the interests of all three parties were aligned. Cohort reduced its office footprint and operational costs significantly, without the burden of their pre-existing lease. Clarify Solution Selling secured premises to facilitate business growth, with the security of a longer-term lease. They also benefited from the existing fit-out which Cohort agreed to leave as part of the deal. The landlord secured two ‘new’ tenancies on the site.Download PDF