SpringTide saved £3.7 million on a spend of £19 million using effective property management for a business requiring serviced offices.
As the business had grown organically, office locations had established without a well thought through property strategy. This had resulted in many of the leases expiring sporadically and many more due to expire imminently.
The company not only required a mixture of freehold and leasehold properties for their portfolio, but also required a mixture office spaces, such as data centres and IT offices. This variety of sales environments created a more difficult offering.
SpringTide undertook a full cost analysis into the business to understand pace utilisation levels, age of assets, dilapidations and price per sq.ft. Once a more complete picture of the business was established, SpringTide proceeded to look for alternative solutions to traditional leases.
Dozens of potential landlords and serviced offices providers across the UK were given a Pre Qualification Questionnaire to shortlist a selection of bidders to be invited to tender. This process was undertook to ultimately create a more strategic alignment of property sites.
SpringTide switched their property portfolio to Regus serviced offices, and negotiated flagship properties as part of the portfolio. This created an overall occupancy cost reduction of 19% and a flexibility to break clauses without penalties was negotiated within the deal.
Switching property providers has not only reduced costs, but also minimised the need for dilapidations and enhanced the quality of the working environment and technologies. The programme was phased in over 12 months in order to reduce disruption and minimise inaccuracies.
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