Method and Approach for Report Information
We
sampled
over
1,000
data
points
of
rental
evidence
on
leasing
that
have
taken
place
over
the
last
18
months
to
Sep
2020.
These
are
based
on
average
rents
for
each
location.
We
covered
75
postal
districts
in
central
London
and
compared them with the rental range for Flexible products.
The
costs
are
estimated
from
15
categories
of
typical
expenditure
associated
with traditional arrangements.
These
include
estimates
for
entering
into
a
traditional
lease,
build-out
costs,
and
operational
costs
(running
and
maintaining
office
space).
The
estimates
are
given
as
a
rough
guide
and
are
based
on
published
data
and
market
research.
Many
of
the
costs
are
based
on
service
charge
analysis
and
industry
benchmarking.
Costs
are
applied
on
a
per
square
foot
basis
and
also
on
a
per
person
basis,
depending
on
the
method
most
appropriate
for
estimating
purposes.
Flexible
operators
that
provide
space-as-a-service
charge
monthly
in
advance
on
an
inclusive
basis.
We
use
a
modified
desk
metric
for
leasing
that
includes
costs
attributed
to
an
average
lease
term.
We
then
calculate
a
monthly
rate
for
comparison.
These
costs
are
generalised
and
are
indicative
of
typical
expenditure
associated
with
traditional
leasing.
A
better
understanding
of
costs
would
be
gained from a specific review with the occupier on a case by case basis.
We
have
analysed
data
on
thousands
of
leases
using
this
approach.
80%
of
the
lease
data
sampled
indicate
a
saving
of
at
least
50%
based
on
comparisons
with
Flexible
products
(by
location).
This
makes
a
compelling
argument
for
reviewing
an
occupier’s
strategy
using
our
technique
to
compare
with
alternative forms of occupation.
Note: A detailed review and consideration will be required for a specific assessment of evidence
and valuation.