London, United Kingdom – All alone, it can be dangerous for a US-based Occupier to pursue a commercial real estate transaction in a foreign city. Without an expert, fully equipped Tenant Representative watching your back, the risk of getting financially assaulted in a back alley is just too high.
It’s critical to speak not only the native language, but also to know the sometimes Byzantine, quirky, local real estate customs. It’s not the same as back in Omaha.
During ITRA Global’s Conference on April 8-10, 2016, in Fort Lauderdale, Florida USA, Chairman Emeritus Debra Stracke Anderson, of Sloan Street Advisors/ITRA Global, Washington, D.C., guided an expert global SWAT Team consisting of executives from our international offices. At the Pelican Grand Beach Resort, they shared extensive corporate real estate expertise gathered while representing major Commercial Occupiers across Canada, Western Europe and Australia.
The international panelists delivered professional insights into commercial leasing protocols, key industry processes and national practices across multiple markets and jurisdictions.
Among the many on-trend topics discussed by the international panel were IFRS 16 – the new international accounting standard for leases – along with the immediate and long-term business implications of “Brexit” – Britain’s exit from the European Union, which was decided in the critical UK-wide referendum on June 23, 2016.
PERTH & BRISBANE, AUSTRALIA
Charles Tatham, an ITRA Global Board Member and principal of Tatham Property Solutions/ITRA Global Paris, France, has observed a gradual relaxation of the standard nine (9) year French lease term, wherein breaks (or lease terminations) every three (3) years are possible and lease documents are often as short as only ten (10) pages.
Mr. Tatham pointed out that rent reviews in France are subject to official French Government annual indexation rather than to the Landlord’s rent increases specified in a Tenant’s lease, like in North American Office Markets.
Lease terms tend to be five (5) or ten (10) years with break (lease termination) options at intervals, with rental rates also subject to annual Dutch Government indexation.
LONDON, UNITED KINGDOM
ABOUT THE LEVY GROUP/ITRA GLOBAL
ABOUT OUR GUEST BLOGGER
Martin Levy is an astute, intuitive and Tenant-centric advisor to a host of European, American and Canadian ventures in London and major regional centers throughout the UK seeking to relocate to new space, to restructure, sublease or assign an existing lease or to expand within their current buildings.A born and bred Londoner with an unparalleled work ethic, Martin is a market-savvy, communicative professional, completely committed to effective, transparent relationships. He not only understands the financial and legal intricacies of complex real estate transactions but also the emotional nature of every negotiation.
Once a mad keen footballer, Martin travels to all of Arsenal’s matches, all the while adding to his vintage football memorabilia collection.
* Note: Portions reprinted with permission of Martin Levy and ITRA Global, based on Canonical Reference to ITRA Global’s press release, dated May 24, 2016, International Corporate Real Estate Panel Discusses Key Market Issues at ITRA Global Conference.