Wakemans Trade Secrets
Insider information of general interest to the construction industry.

For many businesses moving into their own premises that are being purpose built or fitted out for them, presents many challenges and usually creates considerable extra work for the already over stretched management team. A tenant's agent can significantly contribute to the long term success of any such development by providing the right mix of experience that can oversee the contractual issues as well as the actual construction work carried out on site. So says Adrian Aston, director and head of the tenant's agent team at national property consultant Wakemans.

It is a role that is proving to be more attractive in an increasingly complex property world, especially when other management issues that will effect a smooth transition from the old premises to the new are taken into consideration. These can include human resources and IT requirements. Disruption to the normal running of the business can seriously effect the bottom line and can occur not just at the outset when the new building is under construction or during the moving in period. Ongoing problems or maintenance issues resulting from inappropriate specifications often surface after occupation.
"When a business is embarking on this kind of project particularly for the first time, the tenant's agent role can be vital, particularly when it is likely that the management team has no property experience, other than as occupiers," says Adrian.
"Some clients don't even realise that there is a professional who can assist them through the process. They may well find themselves dealing with a developer, a contractor and an agent, who will all provide a mass of information about what is being provided. The tenant's agent will be able to filter and analyse this information, assess what is important and advise on the implications. This will enable the management team to plan the move more efficiently with the minimum amount of disruption to its normal business."
"There will always be certain legal requirements that a developer has to meet when providing commercial or industrial space, but these are not likely to be the same as the tenants requirements. The tenant's agent will be able to look at what is being provided and compare this with the tenants requirements, power, and data cabling are good examples."
"Whatever the circumstances, most companies involved in a major project will benefit from the tenant's agent services" says Adrian.
"Many companies decide to take on more space than is initially required to allow for future expansion with a view to fitting out the extra space to sublet until a time when they do need the space. Incorporating two different levels of fit-out into a project and deciding on what levels of services and finishes are required can raise many issue that will effect the programme and overall costs of the project."
"Another scenario that often benefits from the tenant's agent involvement is when a company is purchasing a new building outright as a pension fund for its directors," adds Adrian. In this instance there will be many issues about the level of specification for the building that will need to be carefully considered."
"Many developments are also now being built on contaminated sites and the responsibilities of the parties and available warranties need to be carefully considered."
According to Adrian, the fee paid to a tenant's agent is easily recovered by the client who will save money on the overall project both in the short and the long term. Apart from the financial considerations, for many clients it is the disruption to normal business that would be unacceptable should things go wrong when the building is occupied.
"We have seen many examples where problems have occurred once a business has moved into their brand new building. For example, if the plant for the mechanical and electrical installations has been located on the roof, directly above the director's suite of offices, the start up noise and vibrations could cause an unacceptable nuisance in the office below. In this instance it will be a costly exercise to go back and rectify the situation," warns Adrian.
The tenant's agent can also make life much easier for the client that wants to integrate substantial changes to the building that is being provided by the developer. If the core building is being split into multiple offices for example, this will effect many different trades such as power, and lighting. All of this can be incorporated into the main contract and the client can deal with one point of contact via the tenant's agent.
A seamless move is desirable whatever the circumstances of any individual occupier. A phased move or early access is often necessary to enable the data systems to be up and running and fully tested before occupation. The contractor will need to make due allowance for this in his programme and also still be able to meet his own contractual obligations.
Usually the tenant will have no direct contract with the contractor who is carrying out the works; the tenant's agent provides a mechanism that allows the tenant to contribute to the outcome of the building.
Yet the tenant's agent not only provides a helping hand to first time clients but also plays an equally important role in supporting experienced multi-national clients. Many 'household name' property developers - including Compass Group, Castlemore Securities and St. Modwen - choose to work closely with property consultants like Wakemans to ensure all legal checks are in place and that they are properly represented throughout the process.
The partnership which develops between the tenant's agent and the experienced client is based on the property consultancy's intimate knowledge of the criteria on which client decisions are based and an in-depth understanding of the company's overall business development strategy. This often means the tenant's agent operates semi-autonomously to negotiate terms, ensuring there is no excessive obligation placed on the tenant.
Whether acting for a first time or an experienced client, the tenant's agent will consider the tenant's business at all times. The tenant's proposed long-term use of the building will be discussed at the outset. In some cases future expansion plans may require fairly drastic alterations to be carried out and it is necessary to decide whether these are best carried out during the existing contract or as a separate fitting out contract at the end.
"The tenant's agent is effectively a watchdog and is vital to the overall success of a project.
In implementing complex agreements for lease, the tenant's agent takes into consideration everything from the lease terms and building design issues to developer warranties, applying his expert advice to ensure the clients interest are protected," concludes Adrian.