Our tenants

We strive to be the landlord of choice within our marketplace

From the start of our relationship with our tenants, we work hard to understand their requirements. Principal-to-principal negotiations are carried out as soon as an introduction is made. This enables us to meet each potential tenant early in the process, which leads to deeper mutual understanding and a quicker transaction. If the letting is part of a project, we take account of the tenant’s views in the build process, where possible, working together to help realise their vision for their space. Whether the tenant is upsizing or downsizing we work closely with them to ensure that we meet their future needs.

We are helping to change the face of the West End with the acceptance by tenants of new and improving locations. We appeal to tenants in the middle market, where rental levels are in the region of £30 – £50 per sq ft (£325 – £540 per m²). Occupiers have a desire to stay in the West End at affordable rents without compromising quality and we have helped numerous tenants in recent years to achieve this. Examples include:

We initiated a tenant forum in 2009, which was attended by tenants from across the portfolio together with a number of our consultants. The event enabled tenants to share their views on a wide range of issues from service charge, via post-building completion reviews, to sustainability topics. Following the success of this venture, we are rolling out a series of quarterly forums throughout 2010, which will reach a wider audience.

We also hold regular engineering forums at a number of our larger buildings. These enable us to discuss with tenants whether a particular property can be operated more efficiently. In addition, there are tenant-focused interactive websites at 43% of our managed properties with a further 15% planned for 2010. Our property management function, which was previously mostly outsourced, was brought wholly in-house during 2009, in order to get even closer to the asset management function of our properties and our tenants. All these initiatives are part of our strategy for giving tenants the freedom to focus on their business rather than worrying about their premises.

During 2009, we introduced standardised ‘green’ leases. These ‘plain English’ documents contain clear and simple revised terms covering issues such as service charges, uninsured risk and tenant protection. Our new leases also include clauses to formalise the intention and co-operation of both parties to reduce energy use and improve recycling. The introduction of these new lease documents has led to a substantial reduction in transaction time and costs for both the tenant and ourselves (see: Sustainability).

Arup

Current rental income: £7.3m pa

“As a pre-existing tenant in the middle of a major redevelopment initiative with our landlord, the transition to the new Derwent London entity was much smoother than we could have hoped. The plans were well advanced and Derwent did not look to disturb the status quo. In practice, we found them forward looking and interested in our view of the building as a tenant and as a place for our occupation over the next decades. They preach partnership and that has been the practice. We have worked with Derwent as landlords on a number of fronts related to our estate. We have sold to them and bought from them; we have leased new space from them and released space back to them as our own business demands have changed and the redevelopment project completed. Over this relatively short period we have developed a partnering arrangement which allows us to discuss issues openly and derive mutual benefit. We have never had a problem we have not been able to resolve with them by straightforward conversation and I would hope they feel the same. Compared to some of our previous experiences, it’s like stepping into the light!”

Cancer Research UK

Angel Building 13,000m² pre-let

“We selected the Angel Building because it is an efficient and welcoming building in an amenity-rich area. It supports our brand and represents value for our supporters. Derwent London’s reputation provided added comfort that the building would be delivered on time. Our experience of working with Derwent London has been a very positive one. They have been open, honest and professional throughout all our dealings with them. They have responded with sensitivity and flexibility to the needs of the charity.”

Unanimis

One of London’s largest digital advertising companies took 1,200m² at the Charlotte Building for £0.6m pa

“Unanimis has been a tenant of Derwent London for several years. This latest deal is evidence of our strong relationship and is testament to Derwent’s commitment to providing quality space to meet the needs of a cutting-edge communications group. We are a loud, busy company but this gives us the space and calm we need to balance that. The building is in a genuinely peaceful part of central London.”